First purchase evaluation.
Hello,
I'm going to be jumping into a buy and hold multifamily home in very early 2015 and was just evaluating some properties. I've been using the 50% rule for most of these (which I could be doing wrong) but I have 1 property that looks fairly promising.
A triplex listed at 135k.
2 buildings and average rent is listed at $700 for each unit.
Each unit is 2 bed and 1 bath.
I would be putting 6k down and using another 2k to cozy the place up via paint/ fixtures ect. To help it rent faster.
Here is the catch. I'll be living in 1 unit (the stand alone unit in its own building) with 2 friends each paying 300. So, it would cost me 100 a month to stay in a unit. We don't mind rooming together as its what we already do. Now, I know there is going to be roughly 135 a month for mortgage insurance as well.
Right off the bat, does this sound like a good idea?
I'm not looking to make HUGE profit but rather steady profit and a place that I'm not pouring rent money into.
ZIP code is 85008 if you want to evaluate the area.