I have the opportunity to purchase 3 trinities in the center city/bella vista neighborhood in Philadelphia but I'm having some trouble analyzing the opportunity and putting a value on the buildings.

Note: Trinities (not triplex's) are 3 story SFH row homes with a basement and are roughly 100yrs old. They are shallow and narrow and sport 1 room per floor with the kitchen in the basement. Coverage is roughly 15x15. They are 3/1 with in unit w/d and small backyards.

Here's the breakdown...

The 3 buildings are all recently rehabbed including new plumbing throughout including service to the street. Also new 100amp electric. Updated mid range kitchen finishes.

The windows need to be replaced but don't worry about this aspect. I will make adjustments based on my expectation of costs associated. I don't have the details at this time.

The owner is looking for $250,000/property. I will offer based on a package deal for all 3. He is open to Seller financing and in some ways prefers it as his father is the lien holder and isn't looking to pull his money out. Current terms are 4.5% 30yrs. He would like to get $30k upfront as he is looking to travel. The rest would be seller financed. They are currently FSBO but he reached out to me to find him buyer's and offered a 3% buyer commission. My plan is to scrap this and adjust the price down. The properties are currently held in an LLC and he is an RE attorney so in order to minimizing fees and transfer tax we would likely assign the LLC into my name (I'm not familiar with this process but I hope to pay nothing down and this seems to make sense to me).

Each unit should rent for $1,300-1,500/mnth. Let's assume gross monthly rent of $4,200.

Based on my CMA these should retail for $230,000 each.

The problem seems to be cashflow. These properties are in a great A neighborhood and won't cashflow the way I would normally hope, but the fact that they are in this great neighborhood makes appreciation nearly guaranteed (I've never factored in appreciation before but this makes me want to).

So...what should I offer? Any help/insight?

Hey @Brandon Turner

I'm thinking you might have some thoughts on this :)

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