Triplex Deal Analysis - Help!
Real estate rookie here. I was presented with an investment opportunity for a triplex in Minnesota and curious how you would analyze this deal.
Unit #1 main level:
3 bedroom, and garage
Unit is empty
Needs a new kitchen, LVP flooring, painting entire unit, new light fixtures, new bathroom vanity
Would get $1300 a month rent for this unit.
Unit #2 upper level:
Upper Level, 2 bedroom
Currently rented out for $905 a month has been a long term tenant (5 years)
Unit #3 lower level:
Lower level, 1 bedroom
Needs bathroom, Kitchen, some plumbing moved, painted, etc
Shared coin operated laundry in the basement
Purchase price is $265,000
Remodel estimate is $30,000-$35,000
Should appraise at $340,000 when done.
The local bank does refi at 80% LTV therefore would be able to pull out 60k (272k - 212k = 60k) with 31k left in the deal.