Riverside Rental Property Analyzsis (Triplex)

[Peter Bui]

Looking at this property in Riverside and here is my analysis. 

8377 Cypress Av Riverside 92503

Lets say I purchase 400,000 

The actual rent on it right now is: 550 + 1100 + 750 = 2400

Expenses (monthly)

Repairs: 50

Taxes 366

Insurance: 100

CapEX: 100

Total Expenses: 616

Loan

20% down, 320000 loan

30years @ 4.3% 

Mortgage: 1139

Cashflow: 2400 - 1139 - 616 = 200 monthly Cashflow 

ROI: 2.61%

Just looking for some feedback on this calculation, it looks like it isn't that great of a deal since ROI is only 2.6% but it does cashflow, so it can't be too bad.

Thoughts? Would that be an acceptable ROI being in the Southern California with the market as it is.

Would you invest in this property if you could get a purchase price? 

(If you are going to pursue it, take me with you! Just want to learn the process)

Thanks in advance everyone! 

[Rob Moran]

@Peter Bui I think you need to recheck your mortgage numbers and I would anticipate additional capex and repairs in this type of product and age of the triplex. Once you do that I think you'll find a different bottom line.