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Real Estate Deal Analysis & Advice

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Brandy W.
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Off market, seller financed triplex. What next?

Brandy W.
Posted May 19 2024, 09:15

I found an off market deal. A triplex fully rented out that currently generates an income of 3K. Once I fix it up I’m certain I could get up to 4K. The seller has agreed to a purchase price of 250K with 30K down. I have 11k cash and the rest I’m taking out if my 401k. I’ll pay a monthly agreed upon amount to seller and have one year to pay off the full amount/find a loan. At that point I’ll pay back my 401k loan, pay the seller and save the rest for repairs.

I’m beyond excited because it’s been my dream to get into the real estate game. I just want to make sure I’m doing this right. What are some next steps or things to anticipate that I might not see coming? I have not seen the inside of the place because it’s fully occupied by tenants. I don’t know what the interior condition is like. I know the roof was recently replaced and the largest unit 4b2ba has had some upgrades done. Outside of the property looks good

The zestimate is saying the property value is around 234,000. And the Redfin estimate is valuing it at 346,308. Should I still get an appraisal? Is there a way to see the interior of the space to get a full picture? 

I’d love any advice or insights. This is my very first home and I can’t wait to be a home owner. 

Thank you. 

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Nicholas L.
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#5 Starting Out Contributor
  • Flipper/Rehabber
  • Pittsburgh
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Nicholas L.
Pro Member
#5 Starting Out Contributor
  • Flipper/Rehabber
  • Pittsburgh
Replied May 19 2024, 10:38

@Brandy W.

this is exceptionally risky.  appraisals are unpredictable - say after that year, it appraises low.  and remember with an appraisal you only get 70-75% of the value out.

you'll still have to pay all the loans back - and where will the cash come from?