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Updated almost 10 years ago on . Most recent reply

User Stats

19
Posts
9
Votes
Kevin Beres
  • Investor
  • Richmond, VA
9
Votes |
19
Posts

Making offer on Triplex in Richmond VA Area - Deal Review

Kevin Beres
  • Investor
  • Richmond, VA
Posted

Hello I making an offer on a property and I would like some help reviewing this deal to see if I am running the numbers right.

This is a triplex in a C class area that is being revitalized in Richmond, VA
Building is 100 years old but that is typical for the area. It has a stucco exterior and the interior is in great condition with hardwood floors

Property is $100,000
Repair Cost $2,500 - Currently doesn't need any repairs but I setting this aside to be conservative.
Closing Cost $5,000
I am estimating 10% Vacancy, 10% Repair, 5% CapEx, 10% Management

Rent is
1 Bed 1 Bath $500
1 Bed 1 Bath $500
2 Bed 1 Bath $600

Monthly Cost
$490 Mortgage and PMI
$100 Property Taxes
$160 Vacany
$80 CapEx
$160 Repairs
$100 Home Insurance
$40 Lawncare
$160 Management (Undecided if I am going to use this)

Cash flow is about $300 a month.

Can someone review this deal and give me some opinions on it. It is an older home but I will be getting it inspected to see if there is any major issues.

Thanks

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