Deal analysis for a first investment
Hi Guys..
After months of reading, and contemplation, I'm hoping to make my first investment in Central Valley, California. The goal with this property is to start my real education about running a real estate business.
Here are the details:
Duplex, built in 2006, 3 bdrm / 2 bath each, long term tenants in each unit. Rents below are actual, and seem to be on the lower end of reasonable based on rentometer/padmapper. Utilities are paid for by the tenants. Good neighborhood, low crime, close to amenities and public transport.
I've added $2000 of repairs just in case some immediate repairs are needed. Since the duplex was built in 2006, I'm hoping that 20% is a worst case scenario for Maintenance+Capex. Is that reasonable? Property Tax is closer to 1.25%, and PM is closer to 8%, but I'm overestimating a bit.
So? Is this worthy of an offer? According to my agent, there is already an offer on the table, but the sellers will wait till Friday to make a decision.
Omi