Need help on my first MF! (Also my first home!!!)

[Account Closed]

Since I am a new investor and also a first time buyer you will most likely need to probe me for more information than I give here...

(Within a day or two) I will have the option of being under contract on this tri-plex in Ann Arbor, MI. Good neighborhood with plenty of renters, down the road is the University of Michigan campus and I'm steps off the bus-line and 10 minute walk to thriving downtown.

Duplex comps in the area are currently $140k - $190k on average (and sometimes more when they are fully rented in great shape).

The MF is a cape cod home consisting of a 2/1 on the main floor (where I'll be living to start out) a 1 bedroom on the upper and, presently, an efficiency in the LL with enough space to be converted to another 2/1. The home is a foreclosure and presently vacant and needs some work to get to code. My plan is to rehad the upper floor 1 bedroom and make it stand out in the market. I'd like to eventually gut out and convert the LL efficiency to a 2 bedroom but will probably just rent as an efficiency for the first year or so...

Total estimated work to get the home to code, do some misc repairs and update the upper unit is 10k. The purchase price I've negotiated after quite a few counters with the bank is $120k and they'll bring $3k for closing. I've been told my my mortgage broker that my only option is to put 20% down so my total out of pocket including the down payment and closing is like $37k approximately. 1 bdrms in the area rent from $550 - $700mo. Efficiencies from $450 - $600mo and 2 bdrms from $800-$1200mo.

This information is not very organized but I'm basically trying to find out if I was purchasing this property as an investment right off the bat (not living in it) would it make sense.

Triplex:
Purchase-$120k
EST. Repair/rehab - $10k
Property tax - $7k yr
Total PITI = $1175mo

EST. Gross rents (me not living there) = $1800mo conservatively but potentially few hundred higher.

My monthly payment while living there (w/no vacancies) would be approximately $200mo.

A side note is that none of the units are separately metered so I will be needing to include heat in the rents, i guess. If anyone wants to help me organize this information and see if it works from an investment standpoint...