Need a quick analysis PLEASE!
Hey everyone,
I found a duplex that needs some work but is in livable conditions. One unit has 4 bds, 1 bath. the second has 2 beds and 1.5 baths.
Unit 1:
4 beds
1 bathroom
Rent=1450/month
Unit 2:
2 bed
1.5 bath.
Rent=1150/month
Expected Expenses breakdown to the following:
Water/sewer= $120/month
Electricity=$40/month
Gas=$35/month
Trash=$35/month
Everything total=$7,168/year
Rents come out to $31,200 a year and $24,032 after a rough estimate of expenses.
My goal would to rent out each room to the college students nearby for $600 per room/month. That would increase the rent by $1,000 a month by doing different marketing that will be free. That would bring my rent after expenses to around $35,000 a year.
The place needs fixing but college students don't mind that too much, being a college student myself. I would have parents cosign to ensure payments and the house doesn't get trashed. This rent is very reasonable for the area and convenience it has.
One of my only problems would be coming up with the financing to own this place. Any help here would be greatly appreciated!
Please let me know what you all think! Thank You!