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Updated over 7 years ago on . Most recent reply

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Blake Shuecraft
  • Paducah, KY
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Triplex under contract! Questions on next step

Blake Shuecraft
  • Paducah, KY
Posted

Hello everyone! I recently just got my first real estate deal under contract. Here is a breakdown to provide some context:

Property is a Triplex, asking price was $135,000 and I got it under contract for $94,600.  All three units are currently leased for $425, $425, and $450 a month, which is about $125-150 a month below market rents.  One tenant has been renting the unit for 10 years, the other for 8 years and the final a little over 1 year.  The property could use a lipstick renovation (paint, cleaned, new flooring in bathrooms, etc.).

I do not plan on holding this property.  While it is a great deal, my goal is to build some capital to funnel into some flips. So my question is, should I spend the time and money into doing a small renovation and bring the rents up and then list it for sale? Or should I just throw this property back on the market and sell it as is?  The current appraised value on this property is $125,000.  Just checking to see if I am missing anything.  Any suggestions would be appreciated.  Thanks!

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