Potential Triplex Conversion- worth it??

[Mike DeLeo]

Hi BP Community,

I found what I think could be a great property, a duplex with the potential to become a triplex, but I have my reservations....

1. It's in a nice location in Northeast Philadelphia, family area, low crime rates, row homes with end duplexes, and also across the street is a larger apartment building with about 20 units. This 20+ apartment unit is what makes me nervous. Would it be wise invest into something directly across from a complex like that? Hard to fill it and keep tenants since they have option right across the way?

2.The triplex conversion is the exciting part - at the moment the two units are vacant, and there is an unfinished basement that could be turned into a 3rd unit. The basement is already gutted and framed out (from photos) but everything else needs to be fixed up, and I am sure needs ZONING for the 3rd unit to be livable.

For such a great price and the potential to create a triplex - triplexes are hard to come by from my little experience in this area, I feel like this is something I should be jumping on. Of course, I need to see what the BPers think...

So what do you think?  I haven't given any sound numbers for deal analysis, I understand that, but does this plan sound feasible? Will it be difficult to fill a triplex across the street from a 20 unit apartment building? Is it too large a risk to take on in my first multifamily deal?

Thanks for all the help.