Author Topic: Triplex Possible Purchase-Midwest  (Read 1158 times)

oilhunter

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Triplex Possible Purchase-Midwest
« on: November 02, 2016, 05:50:19 PM »
A triplex house just came up on the market in a C-D neighborhood mostly working class. Each unit rents for roughly 450 or could, currently vacant but appears to be in decent condition. My thoughts are that the house only has one meter so I the landlord would have to pay for the utilities. How have some of yal broken out the bills to prospect tenants. Below are my estimates of what i think monthly cost might be. I figured with it being this time of year that it might take 2 months to rent. Which might give me time to make rent ready if it wasn't already. Thoughts?

Stats: Selling for 79,900
Unit 1- 1/1
Unit 2- 11
Unit 3-1/1

Best Case Scenario $1350/mo

PITI- 576
Mangement -10%
Vacancy -10%
Maintenance- 10%


J Boogie

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Re: Triplex Possible Purchase-Midwest
« Reply #1 on: November 03, 2016, 10:11:57 AM »
I believe the seller would be able to provide you with historical utility expenses.  If they're bad, I wouldn't consider it a dealbreaker.  You should be able to have the utilities split with you keeping the common areas - and you can work that estimate into your initial investment breakdown.

sammybiker

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Re: Triplex Possible Purchase-Midwest
« Reply #2 on: November 03, 2016, 02:48:56 PM »
This is a management intensive property that you should pass on unless you have a highly engaged and efficient property manager.

Another Reader

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Re: Triplex Possible Purchase-Midwest
« Reply #3 on: November 03, 2016, 02:57:29 PM »
This is a management intensive property that you should pass on unless you have a highly engaged and efficient property manager.

+1. C-D neighborhoods will have higher maintenance expenses and capital improvement costs.  This is a management intensive property, as stated.  Installing separate meters will likely be expensive, and you may be competing with other units that include utilities in the rent, as this property does now.  You might have to lower the rent to attract tenants willing to pay utilities.