[Calc Review] Help me analyze this deal

[Bryan M.]

Little background. The way I purchase properties is a little different from what I've seen from other members. I basically have assets that the bank allows me to borrow against. Kind of like a home equity line but the assets are not real estate. I do not owe specific monthly payments. If I want to pay the interest, interest + principle or nothing at all I can. Anyway, the interest rate is variable and is currently at 6.22%. I was a flipper which made all this easy because I would just hold the property for a short time and then pay the line of credit off at the end. I recently started purchasing rentals. The plan was to purchase properties with the LOC (no cash needed) and pay the LOC down just as if I had a mortgage until I refinanced the property and paid the LOC off completely and was left with a mortgage. Rinse, repeat.

So, I came across this triplex in a B area. It currently has 2 units rented and the basement 1 bedroom unit is vacant. No repairs are needed until the current tenants move out. Even then there are no major issues. Currently has a new roof and new HVAC. When all units are rented it should rent for a total $1,850. Being new to the rental side of this business I'm finding it hard to meet the rules for rental investing. Cheap properties are in bad areas which have low rents. Higher rent areas have more expensive properties. From what I've found in the area, to get $1,850 in rent you have to spend more than $150K. Even if you were to by a distressed property in a decent area, those are expensive at this time too plus you have the reno costs.

Anyway, I'm looking for more cashflow at the moment rather than equity. Anyone have any input on my current situation?

Thanks!

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