First Deal Numbers...Is it worth pursuing ?

Question

Hello Everyone,

Quick question, I am looking to purchase my first rental property and I have come across one that is a tri-plex that can be purchase for 180k. The three different properties rent for $800, $600, and $1200 a month. With knowing those numbers and a mortgage under $1000, is this something I should be considering at that purchase price or should I wait for something different? One of the units has been recently painted and carpeted others will need to be updated when renters move out. If anyone has any input that would be very helpful. Thank you again.

Ryan Knutson · Answer

Awesome information Kevin. I really appreciate you putting it that way, it is helpful. It is in an area that is right outside of a major city that is growing. There will be some work needed down the road but definitely will be having a full inspection done on the property to make sure that there are no major issues coming right after the purchase. Thank you again for your input.

Kevin Zolea · Answer

@Ryan Knutson I'd say it would depend on a lot of different factors. How is the location? Is it in a good area? How is the local economy? Is the population increasing? How high are the taxes? What's the cash on cash return? How much work does the property need? Is it an appreciating area? Does it meet your cash flow goals? These are a few questions I would think about. If everything fits what you are looking for then you should definitely consider it.