What do you guys think of this deal?
Hello All,
It's been a long while since I've been on the forums, but I have finally decided to get serious with purchasing a duplex this year. My apartment lease is up in August so I have set a goal to be in a duplex by then. The idea is that my wife and I move into a duplex and rent out the other side to live in a place for less and have an investment property. While we are living on the one side, we plan on fixing it up, and then eventually moving into the other side, and to do the same thing. Eventually after a year or two we'll move into another place and keep doing that till we have several properties.
We are currently looking in Madison, WI, and I have found an attractive property that I am thinking about making a offer on. The house is listed at $255K, and we are thinking about making an offer at $230K. One side is currently rented out to a long term tenant that is $850 on that side. The other side (the one that we would be living on) is $1300.
So when it's all said and done. The mortgage payment would be around $1600/month, but then we would be getting the $850 (maybe more if we can raise rents?). So that would knock it down $750/month. What do you guys think? Is this an ok first place to start with?
I know I'm a little light in the detail area when it comes to numbers. So please let me know what else you would need to further assess.
Thanks so much!