Thoughts on Two Duplexes Deal

[Brandon Yanssens]

Hi everyone,

I’m currently looking at a deal for two separate duplexes being sold together for $450K total. The units are currently renting for $700 each, but both the seller’s agent and my agent believe they could easily rent for $1,200 per unit.

I’m considering using a 5% down conventional loan. With the current rents at $700, my monthly payment (including insurance and taxes) would be higher than the rental income, so my plan would be to raise rents to $1,200/unit.

I’d love to get your perspective:

• What are the pros and cons of this deal?
• Do you think it’s worth offering the full $450K, or should I try to negotiate lower, especially since it’s an off-market deal?

Thanks in advance for your insights!