Do you pull the trigger?

[Ben Lenger]

Have an opportunity to buy a 1900's 3plex.

Asking Price 69,000

Tri plex brings in 1825 monthly 21,900 yearly

Heat Insurance Property taxes 7500 a year

The house is old has little things like crack plaster needs new carpet and some smaller things...

Would you pull the trigger?

[Roy N.]

Originally posted by @Ben Lenger:

You are correct Victorian home to a tri plex.

Yes new electric has been run.

It has an old boiler. I plan on replacing with a new efficient one during the summer if I acquire it.

It has cast iron going in to the ground then clay tile running to the street.

All units have window air.

1) Make certain the electrical was redone correctly an no shortcuts (i.e. splicing into existing knob-and-tube or ungrounded wiring was performed).

2) Before replacing the boiler, see if each unit is on a separate zone.  If they are, or it can be achieved relatively cheaply (and there are already separate electrical entrances), look hard at replacing the boiler with three smaller units which will allow you to put the utilities into the hands of the tenants.

3) Get the sewer main scoped to see if when you will need to replace the clay and cast iron (if it is still in descend shape, you might be able to sleeve it to extend the life).

4) Window air in each unit, give the impression that the building envelope was never updated (ie. no insulation, just one or two layers of lath-n-plaster).   

5) The building is also most probably balloon framed.  Depending on when it was cut-up into three units, the separation may not meet current fire code - you will need to consider this when undertaking any significant renovation.