Bought my first 3 family

[Mike S]

Our company sold our first SFH rental for about 16k profit and reinvested that into a 3 family of 2 bed/1 baths. Each floor is about 1,000sqft with separate utilities other than water and sewer. Building was fully occupied and in good shape when we closed. Very cool, NYC feeling building.

Purchase price: 80k

Down payment: 20k

Closing costs: 2k with 2k in prepaids

Gross rent: 1600

However the 5th came and went with no rent and I feared three evictions. Posted the notices and with some calls now have all the rent. I think the old landlord wasn't very strict  and the tenants need to be trained. 

I see this building renting for 1800 to 2000 at market rent and with some sprucing up value could be increased to 100 to 110,000.