About to make this deal for a buy and hold

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About to make this deal for a buy and hold

Will Bert
Brooklyn, NY · Member since 2015 · 127 posts · 21 votes

Hi BP I have a situation and need some advice on how to deal with it...

I'm interested in a property that is up for sale. Property info

Purchase price 480k I'm putting 7 % down so total cost is $446,400

Appraised value 480k

Monthly PITI is $3000

apartment #1 rents for $1650

Apartment #2 rents for $1500

Apartment #3 rents for $650

Is this an OK deal ...My plan is to do the Brrrr 

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  • James WilcoxBusiness Member
    Real Estate Agent · Bowling Green KY ~ Lexington, KY · Member since 2015 · 1k+ posts · 601 votes
    11y

    Not really my market, but that triplex seems pretty pricey. Use the 2% rule with your mortgage rate and see what happens. Apt 3 seems pretty low compared to the others. Basement unit?

    I am going to say No with the information given.

    REI James w/ eXp Realty54 Reviews
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  • Will Bert
    OP
    Brooklyn, NY · Member since 2015 · 127 posts · 21 votes
    11y

    Thanks for the reply...but can you explain why you would say no

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  • James WilcoxBusiness Member
    Real Estate Agent · Bowling Green KY ~ Lexington, KY · Member since 2015 · 1k+ posts · 601 votes
    11y

    @Will Bert would the Apt 3 maybe be under rent lock and an older individual? I am pretty sure their is a law or something that you can't raise the rent much on this kind of tenant in New York. Maybe someone from New York can chime in on that but I have no idea on New York laws or market for sure. Now if that person in APT 3 is older and happen to die or move soon allowing you to move that rent closer to market you might have something. (Just assuming that is the case since that rent is very different than the other two).

    IK properties in New York are a lot of money but not sure the rents currently justify the price. However you would need to provide more information for someone to give a better opinion. Appraised value is irrelevant.

    REI James w/ eXp Realty54 Reviews
    WebsiteView Page
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