Updated over 6 years ago on . Most recent reply
[Calc Review] Help me analyze this deal
I am looking to buy my first deal (yay!) and I have until today to decide. Right now the property is in an ok neighborhood and its greatly under rent. All the houses close to it rent for $1300/month (3bed 2 bath). This is a duplex each unit being 3bed 2 bath. The current rent is $1000 for one unit and $1150 for the second unit. The house needs a new roof ($8000) unclog the sewer pipes ($1000) and electrical work ($2500) and new smoke detectors on each side ($300). If I manage to get this all fix ($11800) and spend about $10k on cosmetic repairs I could increase the rent to market value ($1300*2=$2600) and the ROI would be 30%. I think is a good deal, my realtor thinks is a good deal, my girlfriend thinks is a good deal, but I am scared because its my first deal plus I would be living on one side (house hacking since I have an FHA loan). At some point today I have to decide if I'll pursue it or not. Any comments???
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