All Forum Posts by: Ian Baldau

I am looking to buy my first investment property and am unsure if I found a good deal. The property is a triplex that has been on the market for 67 days. The listing price is $207,000 but I intend to offer $175,000 with 25% down at a 6.35% interest rate. The property is currently being rented until August 2023 for $800/unit and includes utilities. The average utility expense over the last 8 months is $680 total or ~$225 per unit. My issue with the property is with the current lease the property would cashflow -$136/month with a coc roi of -3.51% with 7% put away for repairs, 7% for vacancy, 10% for Capex, and 10% for property management. The reason I am still interested in this property is that I believe that I can raise the rent of one of the units to $1000/ month and have each unit cover their own utilities. If I did that then the property would cash flow at $675/month with a coc roi at around 17%. My question is would it make sense to purchase this property since the first 10 months I would be losing money on it but with a new lease make a 17% coc roi?

My friend and I are in our early 20s and are looking to buy our first home. Our goal is to live in it for a year to take advantage of the low down payment and then rent it out. I have a 760 credit score and he has a 680. We both are independent contractors and each have 30k saved up and make around 75k a year. We’re open to buying any type of property but would prefer a multi family. I guess my question is we don’t really know where to get started any suggestions for first time home owners in our situation?