I need help w/ Triplex!(LONG) Happy Turkey Day! - Posted by Carey_PA

Posted by BillW. on November 23, 2000 at 16:49:02:

Hi Carey,
My initial feeling is that price is too high. Typical expenses for milti unit properties run 30 to 40 percent. If one BR’s rent for $495-$525, then the others aren’t going to be a lot higher. If you averaged $550 for all 3 that would be only $1650 per month. take out 30 percent(low end) expenses and that only leaves $1155 per month to pay the mortgage. Payments on a mortgage of 130K would probably exceed that amount.
Not to mention which, it’s empty and you’ll have expenses to fill these 3 vacancies. can you carry the neg. cash flow and expenses??
Try to get a lower price or do a creative deal.
Good luck-- BillW

I need help w/ Triplex!(LONG) Happy Turkey Day! - Posted by Carey_PA

Posted by Carey_PA on November 23, 2000 at 10:14:48:

Happy Turkey Day everyone,

Many of you might know that I usually do mobile home stuff BUT I want to get into sfh’s and multi-units…therefore since this is an area that i’m not too familiar with I NEED HELP! :slight_smile:

I found an ad in the paper…Triplex Bank Repo…
They are asking $140k and owner financing available (a bank I’m assuming is the seller, I haven’t spoken to the realtor he’s never there when i call, I get his machine)

Anyway, they want $1,500 down IF you are going to live in one of the homes and the monthly payments will be $1,477/mo for 30yrs at a fixed 8%.
He sent me a list of the closing costs required to pay as well, $3,116 for 2 1/4% VA funding fee
$5,993 for 14 month R.E. taxes
$466 for 14 month insurance
$10 for credit report.
(IF you don’t want owner financing then 10% down is STILL required and closing costs remain the same)

NOW, if you are NOT going to live in one of the places, then 10% is required down. Obviously I don’t have the 10% to put down. But I do however have the $1,500 BUT i will not move into the home because it’s too far from where I live now and it’s just to “city like” for me…i recently moved out of the city and I like it here, plus I’m not familiar with that area right now.

Ok so the place is TOTALLY VACANT. The place is being sold in “AS-IS” condition. (I can’t begin to tell you what it needs because I haven’t spoken to the realtor yet)

There are 3 apts.
2nd floor- 3br, 2ba, LR, DR, and Kit.
1st floor Front- 2br,1ba, LR, DR, Kit, Bas, garage, and 2 stone fireplaces.
1st floor Rear- 1 br,1 ba, LR, DR, kit.

As for other places in the neighborhood, they range from $61k to $180k and one place even came in at $325k. (these were all properties that were less than .2 miles from the property)

Rents are another story, so far I found 1br in the range of $495-$525 and I even found a place listed for $1,400 but it didn’t say how many bedrooms it was. I was thinking of calling one of those places that list rental properties for free for landlords and asking them some rent ideas.

My question, where do I go from here and how in the world do i do it?? I know I can do it and I know that there must be a deal here SOMEWHERE…and frankly I’d like it :slight_smile:
Can anyone help???

Thanks all,