First rental: a triplex. Would you?

3 Replies

So.... in my quest to move from flipping to buying rental properties, I found a property on the MLS that makes sense numbers wise, but I don't know if I like the current tenant situation. Here goes:

This is a three large 1 bedroom building. Two of the three units are remodeled, and the third could use about $3000 worth of updates. I’m fine with that.

Here’s what I don’t like: two of the three units have dogs. One is a pit bull puppy, the other is a large lab. also, one of the units clearly has 4 people living in a 1 bedroom! Walked into a huge cloud of weed smoke in that one too.

I have no experience landlording at all, but I know from reading Brandon Turners book that there are some not so great things at play here.

To you experienced landlords out there who actually like being a landlord: would you purchase this? I have the money to carry the mortgage for a long time if everyone moves out, and also have the money to evict if people aren't paying. I'm in the process of finding out who is behind on rent, and what the length of the lease is for the tenants. I'm also interested to see if the unit with 4 people in it has that on their lease. I'm guessing I should prepare to evict some tenants.

Also, do you like dealing with a one bedroom apartment tenant? I don’t think I’m going to be able to be as picky as Brandon Turner suggests with credit scores and smoking in his book with a one bedroom apartment in this area. This is a C area.

If the numbers work I would say yes. You can have your lease set the standard for future tenants and put no dogs or smoking. You can request upon closing that the property be vacant, you can use the excuse you plan to update the property, or unit if you decide to keep one of the the tenants. look at the area for tenant funneling. Are there universities, hospitals, large factories near by that you could advertise your units to. If you can handle not having the units filled right away then you have a better opportunity to be picky about your tenants. If your numbers work and you've accounted for a PM then you can pass the job off to them to handle.

Thank you for your reply Justin. I just found out they are on a month to month lease, which I think will make it easier to get the not so great ones out. I need to re read rules again, and also talk to an attorney.