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Updated almost 7 years ago, 02/01/2018
Why is this KC triplex a bad deal?
I'm looking at multifamily homes in Kansas City to live in and rent out the other side, hoping to generate cash flow on an FHA loan. Right now I'm eyeing a triplex in the Northeast, on Independence Ave. It's at 109k and from the pictures and listing it looks to be recently remodeled, ready to rent. If I got this one, I would probably live in the smaller unit on the third floor and rent out the others. Rentometer says a 3 bedroom unit should rent for around $725 in the area, so it seems renting just one of these units would pay for the mortgage, and the other one would more than cover expenses.
Thing is, it's been on the market for 120 days. There's something about this place that's driving everyone away and I want to know what. Surely it's not just the neighborhood? I drove by and it was rough but it wasn't the worst I've seen. The house next door was boarded up and looks to be involved in drug activity, could that be the cause? The numbers on this place check out but people are avoiding it like it's radioactive.