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Forums » Real Estate Deal Analysis and Advice » please let me know if this is close to the 50/2

please let me know if this is close to the 50/2 Subscribe to please let me know if this is close to the 50/2

4 posts by 3 users

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Homeowner · Chickamauga, Georgia


i have found and placed bid on Duplex here local still waiting on financing tho from HML or PML
Please tell me if this fits the 50/ 2% rule if does show me how if don't tell me what does so i can get this pictured in my head to make solid investment choices as i get started thanks for all critiques

AS IS Value right now is 30 K per HUD Appraisal. Now I plan on getting for less than 20-25K. FMV from tax assessor is 57K Tax Assess appraisal is 67K now it needs 5-10k work but area rents are 450 for 1 BR and up to 650 for Two BR. I believe i can purchase and Rehab 35- 40K with ARV 80K and plans are to rent for each side 125 wk( A ) and 100 wk( B )as (A) has Washer and Dryer Hookup and (B) doesn't


Landlord · Hendersonville, Tennessee


I would NOT go with weekly rentals ... Just my opinion. Tenants would treat the property WAY worse if they are just there for a short amount of time, plus the turnover would be horrible.

not sure how the 50/2% rules flows in to weekly rentals, as expenses might run higher (60-65% -- just a guess with the added vacancy and turnover)

I would do nothing less than 6 month leases on your duplex, and assuming you are done building out/rehabbing at $40k, than $1,000 back in rents per month would fall within the 50/2% rule ASSUMING you don't get bent over backwards on a HML.


Real Estate Investor · Charlotte, North Carolina


i wouldn't go by tax values/tax assessments, etc....they're way off in most areas...if the hud appraised it at 30, that's prob what it's worth...btw, it's not hard to add a washer/dryer hook up during rehab....i'd take 1,000/month rent to be all in for 40,000. if you're going hard money, be prepared to refi though.


Homeowner · Chickamauga, Georgia


Originally posted by Bryan Alenky
i wouldn't go by tax values/tax assessments, etc....they're way off in most areas...if the hud appraised it at 30, that's prob what it's worth...btw, it's not hard to add a washer/dryer hook up during rehab....i'd take 1,000/month rent to be all in for 40,000. if you're going hard money, be prepared to refi though.


Thanks Steve and Bryan i was looking at the Washer dryer hook up and on the side that currently has it has been mis managed and allowed for ROT but i understand be easy to add i more than likely will just i was advised not to by the broker showing but i told him that i myself would be more interested in renting with hook ups just so you don't lug laundry down the hill for the Laundry-mat

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