Please advice on North Kelso Wa duplex opportunity :)
Hi everyone:)
I wanted to get your input on a property - it's a Duplex in north Kelso. It's a foreclosure property, being sold by Fannie Mae, for $156,000...its on a private lane, that's off a dead end-road. My agent said both units would rent for $900, but I'm calculating $800/month to be safe. It's a townhouse style duplex, with each unit being 1030 sqr ft, 2 beds, 1.5 baths, vaulted ceilings, small fenced yards, big 1-car garages, and fireplaces. It looks like the bank put in new floors, paint, fixtures, and appliances (those all look new, anyways). The mortgage (w/PITI and PMI) will be just under $1100, so that's $500 a month income (if both units brought in $800), then I'm setting aside $200 a month for repairs/capital expenses, and $160 for vacancies. So the cash flow would be $140(which isn't great). However, there's a good chance I could get $850 a unit, plus in a few years, I will refinance it, and drop the PMI, which would reduce my mortgage payments by $170. It's not in a flood zone, and I have inspection and financing contingencies in place. This would be our first property, and I want to get everyone else's input: do the numbers sound like a decent deal? Also, am I missing anything?
Any input, advice, or thoughts are VERY appreciated!
Thanks so much!
-Drew