Triplex analysis help

[Kay Kim]

Hi experts,

I just decided to jump into real estate investment this year. I made my first offer and accepted. Since this is my first deal, I am so worried if there's anything wrong about it. Please let me know opinions about the deal and any error in my analysis. Thank you.

Triplex built in 1953. Inside, plumbing, electricity are just rehabbed and outside is pretty decent in my eyes. All metered separately and renters pay bills.

Sale price: 115,000

Offered price: 115,000

Down payment: 28,750

Closing cost: 5,420 (I select points for best rate since I intend to keep it for long term)

Total cost: 34,171

Rent: 1,700 (620, 580, 500) Two of them are currently rented and one is vacant.

Mortgage payment: 418

Cash flow according to 50% rule: (1700/2) - 418 = 432

CoCROI: (418*12) / 34171 = 15.17%

[Kay Kim]

Thank you for replies. This is my detailed analysis.

@Jeff Wallenius I am not sure if renters pay garbage or not. I need to check that. Thank you for the tip. I requested current rent roll and currently waiting.

Rent income: 1700

CapEx: 340 (20%)

Management: 170 (10%)

Repair: 85 (5% since it's recently rehabed)

Vacancy: 85 (5% I hear vacancy rate is pretty low)

Tax: 950/12 = 80

Insurance = 1200/12 = 100

Mortgage P&I = 418

Cash Flow: 1700 - 340 -170 - 85 - 85 - 80 - 100 - 418 = 422