Analyze please
Triplex asking $29,000 offer $25,000. Comps none available, tax assessed $46,000 reasonable guess $32,000 to $35,000.
Tri-plex 1st floor: 1-2 BR, kitchen w/new ceramic tile & oak cabinets, remodeled bath,previously rented for $400 + utilities. 2nd floor: 1 BR, remodeled kitchen & bath rents for $300. 3rd floor: efficiency + kitchen & bath, rents for $285. Owner pays utilities for 2nd & 3rd floor apts. 2 furnaces & electric boxes.
Rents
1- 2 bdm 1 bath = $400
1- 1 bdm 1bath = $300
1- 1bdm 1 bath = $285
$985 / 2 = Net $492
PITI 27K @ 9% for 20 years = $359
Cash flow = $133 / 3 = $44 per unit.
The unknown here would be the cost of utilities and could certainly turn this into a loser real fast. Most likely owner is paying utilities to get around obtaining multiple dwelling permits. Would definitely have to convert all 3 apartments over to electric baseboard heating and a 3rd meter would be ideal, which is an unknown cost. Keep in mind I haven't conducted a walk through. The location is a plus. If anyone has ideas on obtaining funding let me know. Listed on MLS, so owner financing is not an option.