Help analyze first potential deal! triplex, cash flow solid?

Question

Hey All -  Been analyzing potential in NY upstate for a while now.   I have a  triplex selling for 115k.  It's currently fully rented and currently cash flowing.  I don't know of any current repairs needed but obviously will look into that deeper.  Looks pretty turn key and seller needs $ for next project.

Ran the calculator and I "think" it looks good.   I have vacancy, and expenses around 9 to 11% monthly.   There is currently an "excellent" long term manager in place to manage, which is needed since I am not local.

Anything I am missing?  Thoughts?  Since it's NY I will check on the bigger expenses such as roofing, water heaters, etc.

Eric Stets · Answer

Thanks as well Donald.    I will edit and re-evaluate how the #s come out

Eric Stets · Answer

Thanks Aaron.  I will definitely look into the water/sewer bills in the area.   The loan I have pre-approved from a local bank with a flat 5.25% interest rate.  I don't believe there's any other points involved, but I will check.  I know closing will be around 4K, but I added that.    The area I am less concerned about as I know the area pretty well.    You're probly right on the repairs though!  thanks guys

Donald S. · Answer

I agree that W/S/T is probably gonna run a lot more than 40/mo. Other than that, I'd throw in an expected repair budget of something, there's always something, at least 1-2k for unknowns. As for the area comment by Aaron, I wouldn't worry about that, just make sure you know where it is, and what buildings in the area typically go for. I've heard some parts of upstate NY are really cheap, so as long as you're comfortable with the area, enjoy and good luck.

Aaron K. · Answer

My guess is that the water and sewer bill will be more than $20 per month, you have no loan points or fees in your calculations, and I highly doubt that the property will require zero repairs (there is almost always something).  I would also be concerned about the area due to the super low price for a triplex.