I am currently looking at a triplex with a detached garage apt. It is in the Spring, TX area just north of Houston. It is a B to B+ property and neighborhood. Some room for forced value and appreciation. It is currently owner occupied, with 2 units rented long term, and 1 unit used for AirBNB, I would not continue doing AirBNB. I would NOT owner occupy it. It is currently set up for owner paid utilities. Shared laundry between all 4 units. I would be purchasing this with a partner who is fronting the down payment. Long term plan would be to refi out in 6-9 years in one manner or another and repay my partner plus 5%.

Purchase Price: $335,000

Loan: 30 Fixed at 4.875, 25% down

Rents: $4,300 (conservative but reasonable)

Utility Bill Back: $200 (Should increase at release for the current tenets)

Utilities: $7,000 (Based off their actuals plus some fluff)

Repairs: $2,000

CapEx: $3,600

Vacancy: 10% (Somewhat a shot in the dark, I can't find any good data for the area)

Taxes: $7,700 (Current tax rate times the purchase price)

Management: 9%

Cash flow with PM: $450.94 per month

Cash flow no PM: $815.44 per month

It is on a well and septic. From a previous contract they had the septic inspected and the inspector said they needed a larger system. The current owner said they have had no issues, and have only had the tank pumped once while owning it in 3 years. Both my agent and I feel she is trustworthy. Granted everyone is biased towards themselves. It also has about 3-4 years left in the roof. My cash flow is planning on replacing the roof immediately with a standing seam.

Am I missing anything? What do y'all think? It seems like a pretty good deal, though not perfect.

Cash flow seems good! Am I missing something?

Most Popular Reply