Good day all and i am new to the biggerpockets forum! Here for more education/confidence/and most important mentorship.
So i found this deal and i would like some evaluations on the season investors to let me know if this is a good deal.
4br 2 br 1,825sq Duplex foreclosure w/ a purchase price of $105k
Both sides newly renovated
One side is occupied with montly rent of $1850 and the other side vacant.
The home is next to a creek. So it will need flood/hazards/landscaping
The comps around the area are in the high 180s.
Ran the numbers if it was just going the one occuppant with all the insurance and a down payment of $10k
Cash flow is low - $73/m but that is based off one occupant @ $1850/m
Cap rate is around 9.6%
And COC is around 8.7%
If the other is rented out then number change but trying to be conservative.
Is this a good deal or bad?
What is a good percentage to margin?
Why is it -73 cash flow??
Sounds solid... whats the mortgage and rehab and flood insurance expense #?
73 is i was going off just the one incomes unit of $1850.
Mortgage with a 10k down payment on a 30yr loan would be 750-800m the house had been rehabbed but there can be some minor adds that can be done
Flood insurance will be $2112 annually
If your numbers are correct, and you rent out the other side, it sounds like a winner. How are you financing it? Is there the possibility of seller financing?
Yes i would see more cash flow if the other side is rented. Just wanted to gove conservative numbers! As for financing it, I am not sure which route is best. This is probably where some
Mentorship comes in. The property is a foreclosure