First, I must congratulate my friend Brandon Turner of BiggerPockets.com on his latest acquisition of a triplex which he discussed here. The numbers he provided looked great. This definitely seems like a rock-solid deal for Brandon (except for the cash out of pocket), but I do see some elements of this acquisition that give me heartburn. In fact, I wouldn’t have touched it with 10-foot pole and I caution you against it as well…
I want you to know that I asked and received permission from Brandon to write this article. I am writing this in the interest of all of you newbies out there, because while experienced operators like Brandon will more than likely do very well with this deal, there are structural elements here that represent a great case study of the less obvious things that can potentially be very problematic…