All Forum Posts by: Dylan Curtis Underwood

Thank you all for the feedback! A lot of great advice.

 After visiting the property, I decided not to offer based on what seemed to be many interior issues, a roof that’s seen better days, and more tenants living in the unit I was allowed to view than I was expecting for a 800 square foot space. But the next day, I had a second counter offer accepted for a not as dated 1970s triplex that I wasn’t expecting so I’m now feeling a combination of fear and excitement that I’m sure a lot of you felt on a first deal. 

I am in hopes of buying my first investment property this spring/summer. I am scheduled to look at a property this weekend with this one being different compared to others I’ve viewed in that it was built in 1900. The city is one that’s consistently listed as a top 10 2024 real estate market, the projected cash flow is intriguing ($50,000 - 25% down payment, estimated $7500 annual cash flow), both units are leased until October and December (as a potential new landlord this gives me some security), but I feel hesitant with offering on a century old property. The kitchens, baths, and flooring have been worked on in 2021-22. The seller listed the property this past Monday and will stop taking offers on Saturday. The property has multiple offers within days which makes me think I’m over thinking this and is possibly an opportunity I don’t want to miss. My question is what underlying aspects of an early 1900s property should I take into consideration? Does anyone have any negative/positive personal experiences with buying properties of this age

As the title says, I'm hoping to get some feedback on possible factors I may be overlooking. The property is 45 minutes from where I live in a town that is growing and am very familiar with so I plan on doing most of the management work. I found a triplex with 2 long term tenants (5+ years) who I've met and kept their units in great condition, though they are in the units that are not renovated and in turn not paying as high of rent. Any feedback would be great:

Purchase Price: $219,000, 90 days on the market

Surface area: 1900 sq ft

1 unit renovated in the past year which includes new flooring: $800, other 2 units: $690 each

Each unit pays water/sewage, $50 internet fee

Condition: roof is ~15 years old, will need replaced

I was provided with an expense report for the 3rd quarter of 2023. The report covered the overall costs of three different triplexes all neighboring each other and built at the same time and dimensions. The other two triplexs, which had 2 unit and the 3 units renovated, sold in the past month (listed at $225,000 and $231,000). I plan on requesting the following quarter report if I offer.

Average Monthly Expenses per triplex (maintenance/insurance/repairs/utilities/property taxes/vacancy):

$730.50

Estimated mortgage: $1,132

I plan of offering $200,000 - $205,000 due to two of the rooms not being renovated, roof needing work, and after being posted for going on 3+ months. After calculating everything, I found that in the first year cash flow would be cash flow positive by ~$250-$300 based on the expenses provided.

- 20% down, 7.5% rate

I question if there are things I'm overlooking with this being potentially my first investment property. On the surface, it seems like it meets a lot of broad criteria for being a positive investment, including a positive cash flow at a currently high interest rate, but I don't want to miss on my first step into this.