I am getting close to making the move on my first property (duplex) I was planning on waiting until June for personal reasons but have the ability to do so now. A broker I had been interviewing told me she has 20 duplexes which they are releasing 5 at a time as to not flood the market, all are 100% occupied with leases. I told her I was very interested in seeing the ones in the better parts of town.
Here is where I am at. I have fallen victim to analysis paralysis. The duplexes she will have available will likely sell for around 50-60K this is common in the community. With rents per unit of $500-$525 on average per month per unit (2 bedroom), so assume a 50K mortgage with 20% down and 30 year term. Property taxes are right around $1200 on average. I have not yet decided if I will go the property management rout, this community is about a 45 minute drive one way from my house so I may.
When I run the numbers it seems to make sense. Am I missing something obvious?
How much work do the duplexes need? Deferred maintenance is always one of the major issues you will have when buying a property. Spending $10-20K of your savings to fix up a rundown property can turn a good deal into a nightmare very quickly.
I told her I would not look at any with Deferred maintenance, which it sounds like many will be in great shape.
Any insight on this one?
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