Thoughts on Triplex deal

[Drew Oberholtzer]

I'm purchasing a triplex in PA for $52K with 20% down.  The first unit is commercial and is rented for $565 with a longterm tenant.  The second unit is a 2 bedroom and is rented for $500.  The third unit is not rented, but it should rent for $350.  The current gross rental income is $16,980 per year.  The expenses are as follows:  Taxes are $1700, Insurance $600, Heat $2100/year, Water $847/year, Sewer $1560/year, Trash 51/month.  The triplex is in good condition and will be managed by a management company.  Any feedback on the quality of the deal would be appreciated.

Thanks!

[Brent Coombs]

I'm guessing that as well as the $52k purchase price, you'll end up needing an extra $10k in immediate upgrades (if not more), which means you should have at least $20k of your own money rather than $10k. And with the left-out expenses of Property Management, Vacancy, Maintenance, Cap Ex and Mortgage, you may end up with about $3k out of that $16,980, which translates to about $83/m per door. Are my figures TOO conservative? What if they're not?

I've never read or heard anyone on BP suggest that LESS than $100/door (net) is a good deal.

Also, if it's supposed to be turnkey at $52k, how's the neighborhood? Sketchy at best?...