Opinions on 2 duplex deal
Hi all, I'd like some seasoned opinions on a deal that is now at my fingertips. I've measured this from every angle i can think of, but i'm still nervous about overlooking something. Here's the specs
2 duplexes sitting back to back of each other. these were built in 2004 and remodeled within the last 2 months. new tile, paint, and replaced some bath fixtures. ( i walked through them about 6 weeks ago when the repairs were underway and talked to the contractor) these have been for sale for several months and though they aren't in a rough neighborhood, it isn't the most desirable one either. while under rehab, all of them were vacant but 3 of them now have tenants with one yr. leases so they rented quickly, and i would have no rehab costs initially.
one duplex is 3/1 and rents for 550/mo. each (1 of these is the vacant unit) the other, with identical sq/ft is 2/1 and each is rented @ 485/mo. these are listed @ 75k each.
I made an offer today on both @ $120k, and split closing costs and they countered @ 130k. i will use conventional 30 yr. financing with 20% down so my PITI will be right at $900/mo. combined- these are separate properties, so i would have 2 loans @ 65k. max income would be $2,070/month but i'm thinking i should still only count 70% of that in my cash flow calculation which is $1,450 leaving $550 monthly cash flow. I have spoken to the local housing authority about sec 8 and may consider that if i don't have some good applicants in the first few weeks. The housing authority told me they have plenty of demand for units like these.
please disect and tell me what i'm missing. TIA