Good deal? First investment property- duplex
Hello! My partner and I have had our eye on a property for a while but never pulled the trigger because we were hoping the price of the property would decrease. Good thing we waited (and lucky that no one else has bought it yet) because the seller decreased the price by 10K. Its a duplex with current tenants whose leases won't be up until April 2022. I've used the Bigger Pockets calculator do look at the numbers but I think I still need some encouragement to actually go for it. Here's what I've got:
Purchase price: 85K, down payment: 16K (don't want to buy the property outright at this time), income: 1000, total expenses: $680, cash flow: $320, CoC ROI: 20.12%, NOI: 8,148
The house doesn't need any major improvements at the moment, and I was considering once the tenants leases are up in 2022 then I might consider making some improvements. I think the cashflow looks good, and there are already tenants who have lived in the apartments for a while and would most likely want to stay, so we would immediately be making money.
Are there other things I need to consider?
Thanks!!