As I've posted a time or two, I'm in the process of buying my first duplex. I've looked at quite a few and had offers on some as well. I had a contract on one but after the inspection I decided to pass on the property. There was too much structural damge as well as cosmetic damage. Now I've found another that I really like. I have questions as to the condition.
The property is in fairly great shape. The vacant side that I would be moving into was recently updated and has many new components. The other side, according to the tenant, was rehabed a few years ago. The numbers seem to work and I will be doing more cruching to confirm this. My question is whether or not it's a good idea to buy a property that doesn't need much work. I know a key factor is being able to add value to increase rents and such.
I would imagine that like all other deals it would depend on the numbers being in my favor. I would just like to know if any of you guys have done any deals like this that have nbeen lucrative. This is my first multi and I really want to do it right. I hope to do larger multifamilies in the near future and I need to start off one the right foot.
If you can manage to get the property in a condition that already cashflows enough to yield a profit for you (and you better be certain the numbers the seller is giving you are rock-solid) then why do you need to renovate?
People buy dumpy houses because often that's the only way to get a price low enough to make the deal yield an acceptable return.
But there are unicorns out there, maybe you found one? When you have all the details, post it in the deal analysis forum to get a full run-down from the forumites.
Thanks for the reply Will. Yeah I still have some research to do I just found this one today.
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