1st Triplex Purchase - Help Please?
I am very new to REI. I have read some books and read articles on here as well. I am looking at a first purchase which is looking strong. I wanted to ask what (other numbers) I should be looking at. Here is what I have so far:
Listing price $225K in a strong rental market. 2500 SQ FT. Owner has listed this property 3 times prior and lives out of state. Listing agent told my agent that "if he has an offer with a 2 in front of it he'll probably take it." Comps don't necessarily support $225K as a 4 family down the street with more square footage that sold for $194K.
Unit 1: 2BR/1B rents for $900 (downstairs) - I would live in Unit 1, fix it up and put in a W/D.
Unit 2: 2BR/1B w/ W/D rents for $800 (upstairs)
Unit 3: 1BR/1B rents for $700 (upstairs) and has balcony access (as does Unit 1)
Total Taxes: $5811/yr
Insurance: $1111/yr
Miscellaneous: $4838/yr
Mortgage payment would be approximately $1800 as I am doing FHA and escrowing taxes. I had my agent (owns properties) and a good friend (also super handy and owns rentals) look at structure/foundation/roof/etc... They say all the big things look good. They think it's a good deal at 200K.
Rents have not been raised in a while according to my agent and he believes with a little work each unit could get $100 more per month. Public sewer, public water, off-street parking.
What other information do I need to properly assess this deal and what feedback might you have for someone like myself (new to this process, not handy). Thank you for your insight!