3 Unit Property, ? worth buying

[Scott Malkin]

Hello, new to this, first time posting, curious what everybody thinks about this investment:
- 3 unit property in San Diego
- current rents are 2400 +2400+1200 = 6000, sought after location, easy to rent
- purchase price $800k
- 1920's property, well-maintained/upgraded, no obvious initial work/repairs needed, has potential for historic designation/ Mills Act thereby reducing taxes
- while financials may not be ideal as solely an investment property, also considering possibility of living in one of the units for a while
- if owner-occupied I can purchase with 5% down, ~ 4.5% rate with no pmi...

Thanks, looking forward to everybody's comments!

[Ned Carey]

$6,000 mo = $72,000 /yr
X50% expenses
$36,000 NOI (net operating income)

That means you have $36,000 in net income if you pay all cash for the property. With an $800,000 price tag that makes your cap rate 4.5% Not a particularly good deal.

With a 30 year $600,000 mortgage your payments would be about $3,400 or about $40,800 a year. You would have negative cash flow.