Triplex Deal Analysis: $153K

[Mark S.]

I was presented with the following deal: Triplex (Built in 1900, excellent location) Purchase Price: $145K Rehab + Closing Costs: $8K Total Investment: $153K Gross Rents: $2,000-$2,300/month Expenses: PM Fees @ 10%: $200-$230/month Owner Paid Utilities (avg): $440/month This includes water, sewer, electric, gas. Taxes: $150/month Insurance: $75/month (guesstimate) Cap-Ex @ 10%: $200-$230/month Vacancy @ 5%: $100-$115/month Maintenance @ 10%: $200-$230/month Total Expenses: $1,365-$1,470/month Total Cash Flow: +$635-$830/month Total Cash Flow / Unit: +$211-$276 10% equity would go to syndicator on back end. No upfront fee. Roof needs replaced in 3 years. All cash purchase among 3 investors. What do you think?