Advice Needed! Triplex under contract!
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 per unit. 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!