BiggerPockets

Hi guys, I would appreciate the communities input regarding a property I'm looking at. I would like to buy and hold it, but if the numbers work, I'm open to selling it quickly. The question is: Other than a "conventional" transaction, what is the best way to structure this deal?

Heres the property in question:

-Asking Price $350K (Reduced from $600K)
-ARV $525K-$550K
-Out of state owner (who is said to be motivated to sell) let the property fall apart
-6 bedroom, 3 bath.
-The owner sectioned off the house into 3 separate units: (2) 3 bedrooms, 1 one bath and (1) studio.
-Property is vacant
-Property needs between $50K to $75K in repairs.
-Property is free and clear but listed with an agent (damn!)
-Once the property is repaired expenses are estimated to be about $700 a month (not including debt service)

If you need more information, please let me know. I appreciate your input.

Thank you

For one, what the triplex split done legally? Is it in conformance with local zoning? Was the work permitted?

If its worth $525K and you're all in at $425K, its a crappy deal. You're at 81% of value and that's too high.

Even at $425K, you going to have to have some very big rents to make that profitable. You need total rents of about $5000 for the three units to be break even as a buy and hold. Maybe you can actually get that kind of rent in HI. Expenses are going to be significantly higher than $700. Read about rental expenses in the Rental Property forum.

Owner financing is an option. Other creative ways to do it include a lease/option or a contract for deed. If you don't have cash for a down payment plus the rehab expenses you might have to find a money partner.

Also, I got word the seller accepted a cash offer 2 days ago