Noobie, Need advice on deal!
Hi,
My name is Korey and I am new to investing. I have done my research and learning and have been waiting to jump in the real estate sector. I finally found a deal that has caught my eye and is a very different kind of deal and would love to hear any advice on the deal!
Background story: the deal comes with two properties. It is near a small college. One is a single family home converted into a duplex. On both sides are 2bd 2ba. The other property is an apartment building with 4 doors. Each one is a 2bd 2 ba. I don't know the square foot of each apartment.
With that said, so far I haven't contacted anyone, just looking at the numbers I was given and decided to ask for your opinion.
Numbers:
Asking price:225k
Built:1910
Loan: 20% down $175,000 loan 30 yr fixed
Estimated mortgage with insurance/taxes: $1,100
Rented: apt A: 650/Month aptB: 650/mo aptC: 600/mo aptD:600/mo AptE:495/mo AptF: 550/mo
Total rented: $3,545/mo
-landlord pays water,gas,sewer :estimated value:$800
Would use property manager: 7-10% per month:
$280
Also, the duplex price value could be around 60-70k sold as is. ARV could be around 100k with 15-20k repairs.
I know I am missing numbers, but anything that you think would help a noobie (would be my first property to invest in) would be great.
Such as things I need to be careful of?
Things I should ask realtor/owner?
Should I sell the duplex to pay off debt of loan?
Anything would help!
Thank you,
Korey