I am in contract for my first investment in a duplex (it was an offer subject to inspection). Looking for quick analysis and advice. I want to know views from experienced folks if I am making a gross mistake.
Insurance - need to figure out (hopefully within 2k per year) - any advice?
My analysis is that it is barely cash flowing but the rents are below market rate. My target is to get the rents to 1300 at least fairly quickly. And after some rehab, around 1500 each side as potential for rent is high in that neighborhood.
Inspection is scheduled in next 48 hours and I am hoping it is not too trashed as families are living there.
Look forward to advice on whether it is a decent enough deal and what should I look for before going too far into it.
All looks well sir. Your insurance estimates are high. Is there any reason that you didn't use an FHA loan (3.5% down) or a low down payment conventional loan?
I am not planning to stay in this place and hence I do not think FHA is an option. It is an investment property and both sides occupied by tenants.
It sounds too expensive to me Your rent will be $2,200 and the price of the duplex is $325,000 that is below 1% rule. The taxes seem high also?? We just bought 2 duplexes and the costt was $200,000 each and the rent was also $2,200 each. I believe our taxes are %$5,000. One insurance company dropped us for almost no reason and we had to get aother company for $400 more (of course we will be shopping for a less expensive company but alll sorts of unexpected expenses drop out of the sky when you are a landlord) The condition of our duplexes were near perfect as they are only 12 years old. We considered them pretty much Turn Key but I never felt it was a great deal. We don't expect much Cappex but we just had to power wash them for $475 so there you go with maintanence within the first 2 months before we even had a reserve for it.