Is this purchase a good Idea

2 Replies

The Duplex I am looking at buying, rehabbing and renting out.

Ok so I have been searching on redfin and zillow for duplexes. I found this one that is in terrible condition but in a decent area. I have driven around the area and it looks like it is in the state of getting better.

My idea is this, it is only about 2 blocks from a train station a couple of miles from downtown and all of the amenities of Atlanta, roughly 2.5 miles from GA Tech and under1.5 miles from Spellman and Morehouse. I am thinking about buying, rehabbing both sides, having student housing or airbnbing on one side and living in the other side.

It is a 2/1 on both sides, I don't know how hard it would be to add a bathroom with a standing shower in addition to the full bathroom, or if I could even do that to code in this are. But either way the student housing is obviously the more reliable of the two as student housing goes. But I could suppliment with airbnb during the down times or what not.

I think depending on how well the rehab goes I could probably rent anywhere from 550 on the low end to 800 on the high end.

Does this even look like a deal that is worth pursuing. Also there is a park less than a block away and the interstate is under 5min away as well.

If anyone has any ideas how much a rehab of a duplex would be?

If my rents are accurate for the climate and the area of Atlanta?

Is this a good idea for this Duplex?

@Cresundo Whitaker , if the Seller is "VERY MOTIVATED AND IS READY TO SELL" (per their ads on Redfin, Zillow and Trulia), maybe start the negotiations by offering to take it off their hands for what they paid last year = $15k? To get more than that, shouldn't they have done some value-adding themselves, rather than leaving all the work to the next Buyer? (The property may well be in worse condition than last year, not better)!

My guess is that the recent owner has already worked out that it would be too hard to carry out the needed rehab work profitably, so do you see the red flag there? All the best...

Originally posted by @Brent Coombs :

@Cresundo Whitaker, if the Seller is "VERY MOTIVATED AND IS READY TO SELL" (per their ads on Redfin, Zillow and Trulia), maybe start the negotiations by offering to take it off their hands for what they paid last year = $15k? To get more than that, shouldn't they have done some value-adding themselves, rather than leaving all the work to the next Buyer? (The property may well be in worse condition than last year, not better)!

My guess is that the recent owner has already worked out that it would be too hard to carry out the needed rehab work profitably, so do you see the red flag there? All the best...

Yes I did think that the seller may not have wanted to put in the time to rehab it. But I was thinking that maybe they were wanting to rehab it to sell it and not rehab it to hold it, rent it and possible sell in the future. I am just learning how to negotiate and your tip is a great idea that I will try because that will give my more money to put in the house. I think a lot of people buy rundown fixer uppers to do nothing and sell them for more in Atlanta because I have seen a few MFH and SFH alike that were bought for half and sometimes more of what the seller is trying to sell it for and it looks like nothing was done to bring that type of value to the property. I will take your tips in mind when I begin negotiating and I will have a trusted contractor look at the property to asses costs and rework my numbers based on the new information that I gain. Thank you very very much, you were super helpful. If I do buy this property I will post updates.

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