1st Deal Review Question-HELP PLEASE

[Stephen Sokolow]

Hi Group,

First I want to thank everyone for the amount of information I have learned in here. Here is the situation. I am a broker in South Bend Indiana. I went on a listing presentation for a tri-plex today. I really hit it off with the owner and want to try and buy the deal myself. This would be my first. Here is what it looks like. 

My Goal: Buy and Hold

Location: Mishawaka, Indiana

Property Details: 3 units. 

- 1 br - renting for $550

-2br - renting for $695

-2br - renting for $500

There are separate electric and water meters but the owner pays all utilities. The comps in the area are between $53,000-$63,000. The owner has a $47,000 mortgage that is not assumable. He manages the property himself. Insurance is $80 a month. Maintenance $180/month Taxes $120/month. 

The owner can not hold paper on this deal. 

I am looking to finance it using either private equity money or hard money. I am looking to get advice on every angle of this deal and whether or not I should move forward. Thank you

[Ryan Ordemann]

you could try to buy it with an FHA loan at 5% down and move into one of the units. then move out later. your cap rate is great. if it was in nj i would seriously be interested. there's going to be more expenses than you listed but you know that and the cash flow should still be good. is it in an area you think it went rent easily enough? use the rental property calculator under tools. and good luck!!! [disclaimer i'm only working on my first deal too]