Pulled the Trigger on a C Triplex in JAX

[Lesley Resnick]

BP-ers

On Friday I purchased a triplex in a C neighborhood.  There are 3 units and they are identical 2/1 no washer dryer / dishwasher / disposal.  They are simple, 900 sq ft.  New A/C, 5 year old roof, no differed maintenance.  The building is old and I will eventually have to update the pumping.

The Numbers:

$102k Purchase

25% down - wanted to do 20%, but liked the rest of the loan

5.0% interest rate 30 years Hard money  I am self employed conventional finaincing is a challenge

$1071 loan fees 1.5% orig

$7292 buy down and other fees = 2%= 1 point lower on rate 

I will use the fees to offset my taxes

It will take 3 years to cover the buy down - I expect I will own this for the long term

My lender is amazing - PM if you want his info

$36k out of pocket - more cash than I wanted, but the deal works

The good part:

$383 P&I on 71k 

$148 taxes and insurance

$300 - Property manager - he is a local guy and does maintenance and property management, collects rent, finds and shows the place.  He lives in the area and knows the neighborhood it includes basic maintenance and turn over services as part of the cost. 

$831 total per month

The Great part

$1800 total rent  $600 x 3 

$969 per month before other expenses maintenance vacancy etc.  I generally do not estimate since there is no way to know the actual until you are in the property

The Value add

The property manager is a good guy and keeps an eye on the place and collects rent.  He is not a Realestate person needs some structure to the process of screening tenets and payment plans.

I am going to put the units on section 8 as they become vacant.  I need to validate with the City but, I believe they pay $650 for a 2/1

I will use the MLS to advertise the rentals

The tenant screening process will be done though my Broker's service 

The lease is currently one sheet of papered will need to be updated.