Ok!!! After reading a bunch of inspiring stories on here, my excitement level is through the roof. So I want to throw this out there and see what you all think. Like I have mentioned or you can find in my profile, I am new to this, and I have little money. (There I said it! Please dont run! :) )
So I have found a triplex in my little town for sale... ive been following it on zillow for about a year watching the price drop every month. Well this month it dropped $10,000. Seriously. I am having my future partner/contractor come look at it with me next week. But I want you all to see my possibilities. The home is big and beautiful. It needs a heating system/boiler. Im hoping the contractor can give me a good estimate on costs. The houseis partially renovated , I am assuming they ran out of funds. Winters up here are harsh... really harsh... the insulation/ roof / and heating system has to bein good condition and will need updated. Here are m, "Ive never done this before, but I feel like I know things" -thoughts :)
I will guess that I need a loan for $55,000.00 to get all three apartments up to date and livable nice condition, $25,000 for the house (unfricken real) and 30,000 for the boiler system and repairs. Repairs could be a lot less, im just throwing a safety number out there. I would lije to have a "just incase account with 2000 aside for emergency) The cost of living up here is very cheap (averages $600-700 for small single family homes in nice condition) This apartment will and has in the past rent out for -
1st floor, 3 bedroom - $500
2nd floor, 2 bedroom - $400
3rd story, 1 bedroom - $300
Again, just thoughts, might be raised and adjusted depending on the funds available to fix up the place. This is about what the last owner charged while it was not in such nice conditions. So this is $1200 a month (lets pretend they all rent out immediately) Lets also say I have to pay 12% interest. With this income the house could be paid off in under 7 years. I am debating if living on the 1st floor for a few years would benefit, that would be an extra $700 a month I normally pay put toward getting this paid down FAST.
Here is the catch. The bank will not give me a loan for this house, as it is not llivable. I am going to search for a private loan, or if you all have another idea??? I dont want to miss this opportunity!!! please tell me this is a great starting out property. I think it would be such a loow risk chance. I will attach more images!!!
