Would you do this Triplex Deal?
About me: I am a new to Real Estate Investing, began learning 2 months ago, and have decided to jump in. First and loudest message I have heard is that it was important to act and start making offers and that will accelerate Learning. My third offer was accepted after some negotiation, and of course now I am scared I am going to buy this property and not get the cash flow I think it will do and lose my $30,000 I have saved for this.
The property: Foreclosure, purchase price is $74,000, 2014 taxes $3897, $1,750/mo historical rent (anecdotal from agent who did cash for keys at foreclosure)
I believe it needs $5-8,000 in preparation and repairs to be move-in ready
Unit 1: 1 bed/bath, ready to rent, maybe 1 hour of cleaning needed, told it was getting $450/mo before foreclosure.
Unit 2: 3 Bed 1 Bath, Some "Honey do" type repairs needed and painting, should have no problem completing it myself in 1 week. told it was getting $750/mo before foreclosure
Unit 3: 2 Bed 1 bath, needs all new flooring, some mold cleanup in bath and would benefit dramatically from counter replacement in kitchen, told it was renting for $550/mo before foreclosure
The Market: 5% Pop growth, 7.8% vacancy
Room to grow rents from historical: here is the fair market for rentals:
One Bedroom $562
Two Bedroom $737
Three Bedroom $994
Am I doing a good deal in your opinion?