What would your offer be on this deal?
Hello all, I hope this is where to post on deal analysis. This is an off market deal brought to me in a good school district in Rochester, MN
In talking with a realtor typically multi's are selling for 100x the gross rent. Rents are currently 1550/month so 155,000 would be the selling price. The owner is asking 220,000
A standard 10 year old sfr is selling for about 200,000.
Let me know what you think on an offer, if any, I should make.
Thank you!
Up/Down Duplex built in 1980s or so. and located in a c+ area I wouldn't be afraid at night.
-Unit 1: 2 bedrooms, 1 (full) bath
-Unit 2: 2 bedroom, 1 (full) bath
-All utilities, garbage, etc are paid by renters. Nothing paid by owner except for insurance & taxes.
-I don’t anticipate any major repairs or replacements being needed in the near future.
Recently replaced the fans in both units’ furnaces.
Brand new dishwasher in unit 1. (unit 2 doesn’t have a dishwasher)
Recently serviced the dryer in unit 2.
980 sq ft for unit 1 (upstairs). 845 sq ft for unit 2 (downstairs).
-2 car detached garage and also a shed in the backyard.
Here is the basic financial info:
-Rents received in 2017: $18225
-Insurance in 2017: $901.49
-Taxes in 2017: $3,200
expenses outside of insurance & taxes are:
-Management fees (8% gross monthly rent)
-Repairs & Maintenance:
o$838.42 in 2016
o$2,045.97 in 2017
-Mortgage interest expense
-City rental license fee ($35/yr)