My First Tri-Plex Rental Property
Hello All. Just looking for some advice on my first property.
So this is a for sale by owner property....basically just turns out to be a guy i know who is looking to cash out of his investment after about 10 yrs. The property was building the 70's its a 3 story triplex with a 1bed 1 bad ~700sq.ft. per unit. There are 8 buildings like this on the street and it is in a very nice gated community. Its not in the best shape but he has remodeled 2 units in the past 6 months with the 3rd unit being finished soon. This building has foundation problems and can only be sold with Cash or conventional loans because of it. I plan to get conventional financing and put the 20% down.
right now the units are being rented out for $625 mo. for bottom and middle floors. The tenants are on separate electricity but the owner is paying for the water which is a min. of $120 mo.
There is a property across the street for sale for 125k.. he said himself that was too much and mentioned lightly he would sell his for 110k. I want to make him a strong offer that would work out for both of us but i'm looking for good cash flow.
Long term... its a little scary knowing that these buildings are so old and may need major replacements roof/siding/heating or air.
-Does this seem like a good investment?
-how much should I offer?
any additional advice would be appreciated! Thank you