Triplex...to buy or not to buy
Hi,
I'm new to these forums and found it when I was searching and researching the question I'm asking.
I have always bought my rentals as forclosures or distressed properties and fixed them up myself and rented them (only 5 yrs experience) This time a round I found a triplex that is all fixed up and fully rented. I am having a hard time justifying paying double what I have in the past because its all fixed up. (I think my purchase price 95K is still in the wholesale-retail realm.
The details:
negotiated purchase price 95k. Rents for $1650/mo. operating expenses $542/mo (figured high). Mortgage expense $527/mo.
Its an 1898 old home but fixed up fairly nice.
I used the calculator from this website which came up with $580 of cashflow (after mortgage payment), 13% cap rate, cash on cash ROI of 22.66%. I just don't know what type of numbers I should be looking for when buying a ready-to-go property.
The numbers will be scewed a little bit as I would be using HELOC for my down payment on a 15yr 4% Conv. loan. I do own other properties so I could get a business loan too.
I'm lost where to go next or just jump in like I did on my other properties.
I look forward to utilizing this web forum as I gain experience to help others.
Any help on this one would be greatly appreciated.
John