Hello BP family. I'm looking to submit an offer on a triplex I recently came across in Palm Springs area. This will be my first ever offer I'm sending on a property. In regards to comps, I'm not seeing to many triplexes I can compare to. I did find some 3 bedroom 3 bath residential homes with the same square footage. Would I be able to run comps for my triplex against other homes with similar square footage that are not "triplexes"? Thank You
You could do that, but just remember to plan for a difference in rental rates. It's not always the case though depending on the neighborhood. I've seen some duplex/triplex leases that are similar to a standalone house just because of demand for the area.
Make sure you're comparing everything against the rent rolls of the property in question. If there's a huge difference in renting from the triplex v. a standalone home then try and find out why.
@Account Closed Great advice. After running the number again i see that it will put me in negative cash flow even with rents being raised. Think I'll pass on this deal.