Hello everyone. Ive been looking on the site for awhile and have learned a lot just from reading other post. I wanted to post a deal that I am working on and want to make sure its a good of a deal as it looks to me.
Its 3 single family homes. All on the same street in a nice subdivision. Previous owner didn't keep maintenance up to what it should be, but they are not falling apart either. 2 homes are rented out with long term tenants of more then 4 years and 1 is empty. 2 houses appraised for 96 thousand each and the other for 86 thousand. Im getting 2 for 60 thousand and one for 55. They all need minor tlc, nothing major.
My bank approved me for the loan amount. My monthly note for all three together will be $1100.
They all rent for $1000.00 each
After figuring up ins, taxes, vacancy, maintenance, and trying to shoot above cost for everything I believe this is a fair deal. I have a current job and will be trying to invest most profit back into the business. I trying to build long term investments that will really start showing up for me in 15 years or so. Im 28 now. Thanks for any advice or thoughts on this. taxes are about 1400 annual on each house. No hoa fees. The third one could be rented out, but I asked him to let me fill it with a tenant so I could do some minor repairs in the house (new carpet, fix some cracked tile, minor stuff he overlooks).
Can you get access to all the properties, so a quality home inspection can be done? Deferred maintenance can be costly. I would factor that into the offering amount or your cap expense/maintenance fees.
I have walked each property very good, and also have had home inspections done. The repairs I'm talking about are gutters filled with leaves, trees growing against house. Interiors are ok and not needing major repairs
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