Duplex Deal | Ft. Leonard Wood, MO | What's your opinion?

4 Replies

Good evening all,

I have honestly been wrapped up in BP for the last week after finally deciding on to aggressively seek my first deal. While looking for deals back home in NC, I figured I would look around in FLW while I'm here for training (Marine Corps). With that being said, please take some time to review the listing below and let me know if the numbers make sense to you as well;

Listing Price: $140,000 ($70k/door)

Rental Income (annually): $18,600($775/door)

Estimated Annual Expenses:

Taxes: $700

Insurance: $1800 (Sitting down with an agent next week to get solid figures on this.)

Mortgage: $11068 (Looking for a 203k FHA loan with 3.5% down at est. 5%)(Additionally a rough est on a mortgage calculator)

Repairs: $1200

CapX: $1200

PM: $1980 (Est. at 10% of monthly rental fee)

Total Expenses: $17,948

I came out with a 13% ROI. ($652)

How does this look to everyone? Am I way off? I look forward to hearing from you all!

Justin,

Thank you for your service!  

FLW is in the middle of Missouri, right? These numbers are ok, but I think you can find better in rural MO. You can actually find those numbers in Charlotte, NC all over the MLS (and things are crazy here right now).

I would shop around a bit.  in rural middle America, I bet you can buy a $1,550 rent property for more like $100k around there (may have to buy two SFRs).  

Good Luck!

Chris

@Justin Blue I actually own two duplexes out there from when I was stationed there a few months ago. I did a VA loan on one and a HML on the other and currently doing a refi with SBPC. You can get a good deal once in a while if you just keep an eye out and act fast. The 4-plexes cash flow pretty well. If you end up getting something I have a great property manager that is also very affordable I can link you in with. Feel free to send me a message if you ever want to talk more on it, I just submitted an offer on an REO duplex out there this morning actually.