Getting ready to close on a property in Montana,
150k for a three plex with a extra lot attached. Three plex is rough and after 30k in renovations it will rent for around 2100 a month and cash flow around 650 with management included. It alone will probably be worth 185k but is not rent ready right now. Lot is probably worth 35k as is. Would love to hear what everyone thinks!!
Hi @David Mutch , based on the numbers you've provided, this sounds like a good deal. Probably a good BRRRR candidate.
How confident are you with the numbers you used in analyzing the property?
Where is this place at? Impressive you can find a three plex in Montana. I am not doubting you, just curious. I am in Great Falls, which I would say is relatively cheap. Any given three plex is $200k or more to start.
2511 12th ave N, Good to see you on here Ethan! Im relatively confident on the numbers as with any 100 year old house the reno can be all over the place cost wise but Im 95% sure I can get it there for 25K.
@David Mutch Have you used the BP rental calculators? They are an excellent resource!
Personally, I would be very cautious in these old, converted homes. Do you have any experience with these? I only ask because there are frequently unforeseen capital expenditures that may significantly alter your budget (ie plumbing, electrical, etc.). Also, inspectors will not know what is behind an old lathe and plaster wall. So, unless you are planning on just a few superficial improvements, be ready for the unexpected and budget accordingly.
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