I'm currently looking at a triplex for sale for 199K. They purchased it 1 year ago for 156,500 and have done nothing to improve the property. The gross monthly income is $2260. They have listed expenses totalling $632. (heat-86, water-80, water heater rental-27, taxes-211, insurance-178 and 50 for lawn maintenance). There is no allowance for maintenance, property management or vacancy. The property needs an immediate 30K in repairs. The cap rate seems good almost 10% but they are not including maintenance which i figure at $300, property management at 150, and vacancy at 70. I feel like the price is too high and not having done any improvements doesn't warrant an increase of over 40K.
Any advice
Any advice