Good deal?
I can buy direct from an owner a 3 family at 155K. Here are the rents, $800, $750, $550. All rents without utilities. Taxes $350 per month. Estimate on insurance $150 per month. Not sure about maintenance, snow, lawn, etc. Most of this I can do my self. But lets say another $150 per month. Water, probably $100 per quarter. Only real immediate repairs are a new roof, est. 10-12K. Also, should probably pave driveway, est. 6k.
The big unknown is tenant reliability. Though new to the area, I know there is high turnover and problems with non-payment. I asked the owner about history on the tenents, they are all fairly new. Only one tenant has been there more than two years. The neighborhood is fairly nice and well kept. I do know incomes are fairly low and renters have a reputation for coming-and-going frequently because purchase prices in the arae are low. So, you get people that can not buy a home as renters.
With this info., what do you think of this deal?