Is this a good deal?
Hello,
I am new to investing so I would love to hear some feedback on an opportunity I have come across.
I am looking at single family home that has been converted to duplex (1,990 sq ft). The property is in central Florida, about 10 blocks from the beach. It's in a fair area, not great but not a war zone. Both units are rented currently. The first unit (1 bedroom 1 bath) is rented for $650 per month. Second unit is 3/1 and rented out at $900 per month. Owner pays utilities $400/month.
It's an owner financed only option. $20,000 down and $414 per month for 30 years.
Total monthly rent: $1,550
Mortgage: $414
Utilities: $400
Property Tax: $87
Insurance: $70
Vacancy & Repair: $310
Net profit monthly: $279
I plan on doing a through inspection to make sure there is nothing major going on. Also, i plan on refinancing at a much lower interest rate so that the mortgage amount is lower.
What do you guys think? Is this a good deal? Thank you in advance for your time and help!
Most Popular Reply
One concern not mentioned is "single family home that has been converted to a duplex". Is this properly permitted? You need to consider your exit strategy before you purchase any real estate.
What if this was duplexed from a SFH by a "skilled handyman" w/o permits? You will have a very difficult time selling it in the future if it's not legit (maybe that is why seller is refusing conventional financing)...