Updated about 7 years ago on . Most recent reply
Made An Offer On A Tri-plex, Now Im Debating ....
Hi Everyone,
What a week is has been. I just made an offer on my first tri-plex. I just looked at it yesterday and it's in good shape compared to what I've seen. Now, For some reason I'm getting worried about the numbers.
Purchase price $170K
25% down: 42,500
127,500 Financed over 30yrs @ 5.250 (Of course, yesterday the feds rose the interest rates.)
Out Of pocket: $51,000 (Includes closing costs($10,000) and down payment.)
Expenses: (Month)
Mortgage: $704 @5.25%
Taxes: $416
Sewer:$150
Insurance: $83.50
Oil Heat: $50
Misc: $100
Total: $1,503.50
Income:
Unit 1 : $1000
Unit 2 : $875
Unit 3 : $800
Total : $2,675
Yearly:
Income $32,100
Expense: $18,042
Total made after expenses: for the year $14,058
Now for the amount i'm putting down would you consider this a good or bad deal? I'm confused, i feel like putting out $50K for a 27% return on my money isn't really worth it..
Do you agree or disagree?
Thank you in advance, I feel as if I'm in a rut right now.