Key insights
- An investor analyzes a Cleveland triplex, questioning its listed price of $230K. While the gross yield appears attractive at first glance, concerns arise regarding the property's age, vacancy, potential maintenance costs, and location. The investor suggests the property might be overvalued and closer to a $170K deal, implying caution for potential buyers due to potentially low or negative returns after factoring in all expenses. This reflects a cautious outlook on certain real estate investments.
Was looking at this triplex in Cleveland and wanted to get some opinions: 1374 E 115th St , $230K , 3 units / 7 beds total
Rents look something like: $900 , $1,200 , $850 (one unit vacant)
So call it around $2,900/month if fully rented.
At first glance it actually looks pretty decent for the price. Rough math puts it around a ~5% gross yield, which usually catches my attention.
But when I started thinking about it more, I’m not sure it’s as good as it looks: Older property (1900 build) → probably ongoing maintenance, One unit vacant → not stabilized, Taxes aren’t nothing, Area is a bit hit or miss
Feels like one of those deals that looks strong on paper but could get eaten up pretty fast once you factor in real expenses.
I wouldn’t be surprised if this ends up barely breaking even… or worse depending on management + maintenance.
Would you actually buy this at $230K Or is this more of a $170K type deal?