Louisville Triplex Analysis: Purchase or Manage
I am considering purchasing a triplex adjacent to a property that I own. I have started the discussion with the current owner. They purchased the property as a primary residence in 2008 for $185,000. The current rents are about $1750/month including the unit that they live in. Is there any way to structure a deal that I would be able to have an adequate amount of cash flow? I just don’t see the number working out any way you look at it. They are not motivated sellers, but I do believe that they are not interested in being landlords as they have had some trouble with tenants. I brought up the idea of owner financing and they may be interested. Is there any way to keep current financing if the property is sold? Do most mortgages have a “due on sale” clause?
Alternatively I brought up the idea of them keeping the property for tax advantages and appreciation and allowing me to manage the property at a rate below the standard management fee in our area. I have several units, so am comfortable taking on the addition management. Any advice about going either direction would be appreciated.