Analyzing my first deal - need a pep talk!
Hey, everybody! I'm looking at purchasing my first deal from a client of mine who I manage some properties for. It's a small triplex, and after crunching the numbers, it should cash flow around $450 per month conservatively after all expenses. One of the units is in decent condition and the tenant seems fine, but the other two units are rough and I would be inheriting some chain smokers who live there now. My first thought is to evict them one by one and overhaul the two bad units. I guess I should look at this from a dollars and sense standpoint and pull the trigger because it makes money, but I want to have nice clean apartments and not catch a bad rep right off as a "slumlord. " Lol. Somebody talk some darn sense into me!
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So financially speaking, you have not given us any details at all other than your expected cash flow number. What are you basing that number from? If you are willing to provide detailed numbers, we can give you feedback on the financials rather than just your tenant smoking issues.