Updated over 6 years ago on . Most recent reply
Newbies: Is this a good deal?
First off, I'm a complete newbie here. My husband and I have been discussing getting into real estate. Ideally, with rental property. We would prefer to pay off our mortgage first (4-5 years) which is our only debt. However, there is a deal that I think maybe too good to pass up. I'd really like to get some opinions.
Home for sale is a duplex, for sale by owner for a very low price. The home (both sides) were gutted with electric, plumbing, windows, installation, drywall and kitchen remodels in 2009-2011. Part of the roofing needs to be replaced though. The current tenants would like to stay.
This property would bring in low income tenants and the overall take home would be small. I, personally, feel like this would be a good starter property for us to see if this is something we truly want to pursue. My husband would like to purchase mid- to high-end property where tenants are more likely to take care of the property.
What are the good, bad and ugly outcomes of this situation? What red flags do we need to look out for? What questions should we ask the owner?