Opinions on Potential First Deal - Triplex

[Troy Pickens]

I am just getting started in real estate investing and was hoping to get some more experienced opinions on a potential first deal. I have been learning everything I can from this site over the last few months and this property seems to be a good opportunity. I would love to hear any feedback you have to offer!

Property Info: 

Triplex in Oklahoma - (Duplex with additional house on back of property - all units 2 bed, 1 bath.)

Listing Price: $72,000                    Built: 1930                 

What I like: 

Current Rent - Property has previously rented for $500 for duplex units and $550 for back house. The duplex units are both currently occupied with leases through August and October 2018, back house is vacant. Based on analysis, we should be able to cash flow with the current two tenants in place ($1,000/month). 

Potential for Improvement - This property is not in the best area of town, however the street it is on is really nice for the area with many newer houses (2005 or newer). The property is in pretty rough shape, but there is a lot of potential with this property. Our current plan would be to purchase the property, and put some money into fixing the back house before renting in out (estimating $10,000). Assuming the current tenants continued to pay rent and there weren't any major issues, we would let them remain for the lease term and beyond. When they left or we decided to make a change, we would fix up the duplex units and rent them out at higher rates (most 2 bedrooms in the area rent for $600+)

What concerns me: 

Tenants - We don't have much background info on the tenants. We know that they are up to date on rent payments, but I'm concerned what we could be getting into. 

Condition of Property - The property is not in great shape. Everything cosmetic would need to be redone, I'm not too worried about this, just an expense to consider. I'm more concerned about any major structural issues that may come up. We don't have info on when the roof was replaced but there is no major visible damage. The disclosures say that foundation repairs were made in 2016 under one of the duplex units, so I'm hoping they inspected the rest and took care of major issues then. 

First Deal - The first is always the scariest... right? 

Right now we are thinking we will make an offer and if it is accepted, at least get an inspection and see if there are any major concerns at that point.

Would love to hear peoples thoughts on this. Any input would be appreciated!

Thanks,

Troy Pickens