First-Time 203k Loan Investor – Rehab & Cash Flow Outlook for Triplex in Kingston, NY

[Paul Williams]

Hello All,

I’m looking at a property: a triplex at 171 Greenkill Ave, Kingston, NY (https://portal.onehome.com/en-US/share/1266262q65952). This one is definitely dated and will need work to get it rental-ready.

Details so far:

• Purchase Price: $425K
• Configuration: 3 × 1BR units (all vacant)
• Rehab Needs: Carpet removal, dated kitchens/baths, general cosmetic refresh, possible system upgrades (roof/heating/water heaters unknown). No obvious structural issues from the listing, but the age suggests surprises are likely.
• Rehab Budget: • Low estimate = $50K (light updates) • More realistic = $75K (new kitchens/baths, flooring, paint, code updates) • High end = $100K+ if major systems need replacing
• Rents (CMA comps): • 1BRs: ~$1,400–$1,750 each (https://prnt.sc/RMm854WPuPdk) • Stabilized Gross Rent: ~$4,200–$5,250/mo (~$50K–$63K/yr)
• Cap Rate: ~9% if rehab stays in the $50K–$75K range, falls closer to 7–8% if it pushes past $125K

Constraints:

• FHA 203k requires me to live in one unit for 12 months, so only 2 units would generate rent in Year 1.
• With 2 units rented, cash flow looks negative (~–$600 to –$900/mo).
• With all 3 units rented after Year 1, cash flow flips positive (+$600–$800/mo) and grows with rent increases.

My Question:
For anyone who’s done a 203k or similar triplex rehab — does ~$75K sound realistic for getting this building into clean, rentable condition (floors, paint, kitchens, baths, basic systems)? Or should I be planning closer to $100K+ to cover hidden issues like roof, boilers, plumbing, or electrical?

Would also love to hear from anyone who’s tackled other “dated but not destroyed” multifamily.

Thanks again!