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Syed Zafar
Pro Member
  • Investor
  • Biddeford, ME
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29
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[Calc Review] Help me analyze this deal

Syed Zafar
Pro Member
  • Investor
  • Biddeford, ME
Posted Oct 24 2020, 07:16

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*This link comes directly from our calculators, based on information input by the member who posted.

Hi Everyone, 

I wanted to get the forums to take on this deal I'm looking to move on. It's a triplex, each unit with 3bd 1 bath. The rents for a 3bd in the area are generally 1,300 - 1500+ (depending on renovations, utilities, etc.). This property is quite older; units still have an old-school wallpaper and generally look like one of those older houses, so I priced the rent according to and stayed on the conservative side of $1300. I'll be house-hacking this, so going in with an FHA 3.5% down loan. Since I don't mind having roommates, the numbers displayed are with me renting two of the rooms out in "my unit" at $400/room. I could do a little higher may be closer to the $500 side but keeping it conservative at $400/room. This property is located near a college and areas where young professionals work, so I'm comfortable with the room renting to decrease expenses. Beyond that, I've tried to keep my expenses on the higher side to look at worse case scenarios and being overall conservative (I hope). This summary is with me house-hacking it, and I'll include the exit strategy in the comment below of me not living in the house after I move on from it to look at both scenarios. 

Also, the asking price is currently $363K and I've priced it according to paying the asking price and no-negotiations. I would like to offer in the 340-350K range but sticking with the asking price as a worst-case scenario. My personal opinion is that it's a pretty solid deal, but as it will be my first rental, first property, and major leap into REI, I'm a little nervous and would like to get a fresh pair of eyes on this deal. Thank you in advance for your time and assessment. 

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