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Updated almost 6 years ago,

User Stats

19
Posts
4
Votes
Toi Perry
  • Rental Property Investor
  • Atlanta, GA
4
Votes |
19
Posts

First deal under contract

Toi Perry
  • Rental Property Investor
  • Atlanta, GA
Posted
Please help me analyze my first deal which I am currently under contract for and will have an inspection on tomorrow. I am having trouble finding comps since there are not many triplexes sold near this area. I was unable to see the property until I put it under contract. During my first walk-through, I realized that it may need a new roof (judging from my untrained eye.) My plan is to lower my offer based on inspection. I will also live in one unit for at least a year while doing any necessary cosmetic work to raise rents to market rates. My boyfriend & I will also pay myself rent to add to savings for reserves. My goal is to at least lower my current living expenses ($800/mo) until I move out and start cash flowing. Offer Price: 185,000 FHA 30yr loan amount: $181, 649 Interest rate: 5.125% All units 2bd/1b w/ 1 car garage Current Monthly rent: Unit A : I will live in. Currently rents at $725 Unit B: $685; lease expires April 2019 Unit C: $625; lease expires April 2019 Opportunity to increase rents after April (Avg rent in area $750 for 2bdrm.) Taxes: $222 Mortgage Insurance: $126 P&I: $989.06 Closing costs: $9,568 Potential Operating Income: $27,000 Operating Expenses Property Mgmt (10%) - (2700) Water (currently paid by landlord -only one meter) - ($1839) Vacancy (8%) - ($2,160) Maintenance (10%) - ($2700) CapEx (10%) - ($2700) https://www.trulia.com/p/ga/conyers/1724-wesley-way-nw-conyers-ga-30012--1004675021 Any input/advice would be greatly appreciated.

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