Calculating 20-30% CoC return. Check my calculations
I am living in the twin cities, but looking to buy rental property in my hometown of Duluth. The reason I am looking in Duluth is because I know the city very well, rents are high compared to property value, and I have many connections there for repairs.
I keep running calculations on these properties, and even at list price I am getting insane returns. I usually calculate like 10-15% in the twin cities area. I thought I was being conservative on expenses but I don't know. Just looking for some input.
This is a duplex. Both 1 br units renting at 650 and 700. In a not-so-great part of town.
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#2 Multi-Family and Apartment Investing Contributor
- Rental Property Investor
- St. Paul, MN
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#2 Multi-Family and Apartment Investing Contributor
- Rental Property Investor
- St. Paul, MN
Dillon, the deal is not bad. It will bring in some nice cash flow and should remain that way. Duluth is a stagnant market and likely will not have much growth or decline, so it will be steady cash flow and slow appreciation - not a bad thing if that meets your goals. I do not own in Duluth, but have family there and have looked into the market quite a bit.