Newbie: offer on triplex and dual agency

Newbie: offer on triplex and dual agency

Alesha IrvinPro Member
Rental Property Investor · South Central MS · Member since 2017 · 24 posts · 3 votes

Hi all! Newb here.. need some help.

I'm interested in a property and I've run the numbers. Would you all mind giving me feedback? A little bit of background: this property (triplex) is in my dad's hometown. It's an older small town. There aren't a lot of triplexes in the area so comps are difficult and there are only like 4 real estate agents. I thought my aunt suggested a person but turns out there was miscommunication (even more weird --- now I'm in a dual agent situation bc she showed us the property). 

The property: List Price: 83K

Offering: 69k 

ARV: ? Conservatively 83K?

Repairs:? (There is no property disclosure statement as this is heirs property and the heir lives out of state/ never lived in the property. It was built in 1920.) It looks like it's been well maintained on the inside; the outside has paint chipping) I anticipate learning more during an inspection. 

Only one unit was occupied recently: he passed from COVID; the owner/occupant passed a while back. 

Door 1 (2/1): $550

Door 2 (1/1): $525

Door 3 (studio): $450

P&I: $436.52

Vacancy: $106

Maintenance: $152.50

Property management: $106.75 (We will likely self manage but always good to put the number in) 

Taxes: $153 

Insurance: $125

Cap ex: $152.50 (10%) 

Total expenses: approx. $ 1233

Total monthly income: $1525 (conservatively) 

Utilities are all sub metered 

Cash flow: approx. $292

Two questions: Should I reach out to another agent to eliminate the dual agency issue? ( I made an offer Monday and she JUST sent over the sales agreement contract) Any feedback on my numbers?

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  • Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    5y

    @Alesha Irvin good luck with your REI journey!

  • Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    5y

    Is the agent the listing agent too then?

  • Alesha IrvinPro Member
    OP
    Rental Property Investor · South Central MS · Member since 2017 · 24 posts · 3 votes
    5y

    @Caleb Brown yes.

  • Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    5y

    I'd ask then to be unrepresented. She would still get paid the same if it was dual agency. If you did want to bring in an agent then she might throw a fit since she wouldn't get both sides of the commission. At the end of the day if you guys have a verbal deal then she shouldn't care if she gets both sides of the deal. I wouldn't personally represent both sides, too risky. 

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