Would you take this deal? First deal.

[Julian Hendrix]

 Purchase Money Mortgage

Two properties one's a triplex. One is a two bedroom one bath apartment with storage underneath all four units are being rented under market $550, $475 $400 $300 total $1725

Seller wants 10k down $1,600 a month x 30 months= 48k I pay taxes and utilities An additional 60 months at $200 for storage after

The total I should be paying a month is with taxes + utilities is about $2050 to $2200 a month

Waiting on the CMAs from the realtor but I was told both places are worth 60-70k for the area

Seller has not raised rent in five plus years.

Long-Term tenants, shortest tenant has been there there 5+ years, and the longest Tenant has been there 20+

All leases are on the month to month

I feel that I can comfortably raise rent $75 per tenant bringing rent totals from $1725 to $2025 per month

I'll be losing 25 to $150 per month for 2 and 1/2 years. However after that I Will own them outright after the 30 months.

What would you change?

[Julian Hendrix]

Quote from @Jaron Walling:

@Julian Hendrix How much experience do you have with REI?

"all four units are being rented under market $550, $475 $400 $300 total $1725" - These units are incredibly cheap like C- or D class cheap? Rising rents is going to stir the pot. They haven't raised rents for a reason. Without experience that's a PM nightmare waiting to happen. 

"Waiting on the CMAs from the realtor but I was told both places are worth 60-70k for the area." - No offense here but this is not expense RE. The offer price for those units is almost our rehab budget for a distressed SFH in our market. You're talking about loosing $25-150 per month. You need to see positive CF of $150 per right out the gate. There's little to no upside here. 

Unless the market has a secret weapon in the pipeline, good signs of future appreciation, infrastructure improvement, city projects, etc. - No I'm not buying these properties. 

 Thank you for your input. I guess I should say I help run a personal care home. I have to raise rents, find new tenants, and evict sometimes too so indirect xp I'd say,  I've been renting out about 21 doors at the care home for 10 years now. Also I am looking to turn these properties into sober living homes for women that should  DBL rent output. I have xp and contacts with both communities.  But those are my plans after. As the deal sits now it's a bad one? Eating $4500 over 30 months to gain 2 properties with a CF of $1500 Per month