[Calc Review] Need Help in Analyzing Out of Area Triplex Deal

[Taylor Knott]

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*This link comes directly from our calculators, based on information input by the member who posted.

(Sorry for the repost for those who saw but the initial one had a broken link)

I have been looking for my 1st rental property. I am been looking at duplexes, triplexes and fourplexes. I live in way in Humboldt County in Northern CA and there are limited MF options. Running the preliminary numbers rent doesn't even pay PI. So I opened up my search to outside of my area 3 hours South of where I live. I found Duplex with a cottage on the property. The cottage looks like it needs work and the duplex is upgraded but has some finishing work as well.

The purchase price is $225K but with work needing to be done and the cottage needing work there seems like room to negotiate down so I used $210K for the purchase price which brings COC to a little over 12% and $600/month in cash flow.

I reached out to get more information on realtor.com where it was listed and was obviously contacted by realtors and lenders. Which is great because this coming week I am going to get pre qualified. My question is what steps do I go through to vet these deals I find and initially run, decide on a city/neighborhood.

It is exciting to be finding deals in what I am looking for but I just want to make sure the process is right for nailing down numbers and info. I want to take action but in a educated and well informed manner. I appreciate your time and input.

-Taylor