I found a tri plex mls 775184. 3 separate houses 2/1 752 sq/ft. I’d say B-C properties. Rents are 850, 1095 & 1095 although my plan is to live in one for a year. Comps are 370-400k. I’m approved fha at 3%. They have multiple offers and I need to do a best offer by 5 pm. My agent said his investor friend is offering over 400 and that the inspection for the fha is not great for getting an offer from me accepted.
the seller also has an accepted offer on another property and has to close by the end of April for a 1031 exchange.
Im in Oregon, 50 miles south of Portland.
Prop man/water/landscaping= 450 mo.
I want to do a best offer but I think I’d have to manage it and do the yard work just to break even.
Any thoughts on this would be greatly appreciated.
It sounds like a good deal at first but if the numbers don't work, then the numbers don't work. You could put in an offer at a price that makes the numbers work, and then if it doesn't get accepted you know it wasn't a good deal anyway and can move on to find a good deal.
My REA said I’d need to be at 425 plus appraisal guarantee. I hope I don’t regret passing on that.
@Andra Tom I believe FHA loans typically take longer than 4 weeks to close so that might not be possible to meet her 1031 deadline. When you say you would be breaking even, do you mean breaking even and living in your unit for "free"? If so, maybe it is interesting deal knowing that you can cash flow at least $850/month if you rent out all 3 units?
Ya the fha loan was an issue in a couple of ways. Breaking even was with all three paying full rent. It would’ve cash flowed a little under $100 per door after expenses at $410 with 40 down. And then would’ve gotten better obviously over time. But it didn’t work out this time. I’ll just keep trying.
thanks for the responses. I appreciate your feedback.