I think I found a good Triplex deal!!! Let's see.

[Adam Scheetz]

Okay, I'll try and make this as concise and equally informative as possible. 

I have learned not to trust the Pro-Forma numbers from most brokers, and for good reason. I will layout what their numbers were and then what mine were and you can give me your thoughts.

Known factors. Good community, steady market growth, good job forecast, populated area, near large military base, and located near major interstates.

BROKERS NUMBERS: 

Triplex: Asking $145,900 ON market for 1 year.

1) Assuming for the sake of calculations 0% down @ 4.3% Interest.

2) Units: 1/1, 1/1, 2/2, 2,800 sq.ft, 100% occupied

3) Rents: $475, $475, $575 (under market by $25)

4) Cap Rate: 9.06%

5) GRI: $18,600

6) Taxes: $2,200 (2018)

7) Op-X: $3,180

8) NOI: $13,220

9) Approx Mortgage: $700/mth

Owner pays water only (approx $40/mth for all 3 units). All utilities are separately metered.

So....I began my own research and number crunching and found several disparities in theirs. Here are my numbers.

1) Rents: $475+$475+$575= $1,525/mth x 12 mths= $18,300/yr GRI (They were off by $300)

2) Taxes: $2,370 (They were off by $170)

3) Op-X: $3,180 (Trust but verify)

4) Building is actually 2,392 sq.ft (They were off by 400 sq.ft.)

5) NOI: $12,744 (Off by $476)

6) Cap Rate: 9.06% (Let's just leave it and see)

7) Approx Mortgage: $700/mth

8) Assuming for the sake of calculations 0% down @ 4.3% Interest.

Factoring all this new info in and for the purpose of simply running numbers. A more appropriate price with a 9% CAP and the actual NOI is $140,662. This is $5,238 less than their asking.

As it stands now without any rent increase or substantial drop in price, I'm looking somewhere at $120/door. After a slight increase in rent up to market standards I'd be closer to $135/door or more. Remember also that this is no money down and no drop in asking price or negotiation. 

I'd love to know your thoughts!

Thank You,

Adam Scheetz