Today I received a private message from a BiggerPockets colleague (we’ll call him Jake) that asked a very good question about a potential property he was looking at. Rather than try to summarize, let me just show you the message:
I wrote out a rather lengthy response and then decided this would make a really good discussion here on the blog. So follow along with me as I analyze this potential property and show you how I look at something like this.
The Potential Rental Property Deal
Allow me to quickly sum up everything in the above question, just so we are all on the same page.
- Jake owns a home already, with a mortgage payment of $734 per month. His home would rent for $900.
- Jake is considering a Triplex that just came on the market in a good area
- The triplex consists of a main house with two basement apartments.
- The current asking price of the property is $250,000, but Jake is hoping to pay $210,000.
- Jake would move to the triplex, live in the main house, and rent his former house and the basement apartments.
So Jake’s wanted to know my thoughts. Would I do it?
Honestly, at first, I thought “Seems decent.”
HOWEVER.
Then I dug into the numbers.
(click to continue reading on BiggerPockets)
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