Triplex Deal Analysis - HomePath Property

[Tom O'Donnell]

Hello everyone!  Long-time reader and listener, first time posting with a deal analysis!  Looking for feedback and advice on this property.  Thanks in advance!

I found a triplex I believe may be worth investigating further. I plan to put 3.5% down FHA or 5% down conventional and house hack. I would be living in a 2BR and considering renting 1BR on Airbnb to supplement my reserves. This would be my first investment property. I currently live at my parent's house and do not pay rent. I am saving about $1500 / mo that I can put towards the property. I plan to do the easier rehab tasks myself. Depending on how long this would take, I could start renting a unit immediately after paint and new appliances and vinyl floor to get cashflow coming in, and work quickly to get the other unit rent ready. The unit I would be living in could be worked on slowly since I would be living there. The plan would be to transition out of my unit into one of the other units if a tenant leaves since I can get more rent for my fully updated unit.

Description :

Tri-Plex, 3 separate entrances, separate utilities.  Built-in 1900, typical for the area.   Full unfinished basement that could be used for tenant storage, hopefully enticing them to stay longer. Forced air heating, Window a/c units, and Gas utilities.  The utility costs can be passed to tenants. Property is being foreclosed on, the photos show the property in decent shape, just outdated with some minor fixes like painting, new appliances, and laying down the vinyl floor.

Purchase Price: $155,000

Down Payment $5425 (3.5%)

Closing Costs: About $5000

Light Rehab (I will paint, put in vinyl flooring, and replace the toilet and sink fixtures.  Adding extra, for unseen expenses) $10000. 

All-In : $20,425

30 Yr Fixed at 4.5% APR, Mortgage and PMI is about $957 / mo

I researched with Rentometer, Craigslist, and Apartments.com to find the average rental price, then knocked it down $20 / mo to get to $1250 / mo

Unit 1 (2BR/1BA) - 1250 / mo 

Unit 2(2BR/1BA) - 1250  / mo

Unit 3 (2BR/1BA) - 1250 / mo
Total Rents - 3750 / mo

Cash Flow ($1766-$957) = $809 / mo

Cash on Cash (9708/20425) = 47.5%

These numbers seem great.  Pick my deal apart.  Where am I going wrong?  Where are my estimates off?  And if it's good, let me know!