Is the Duplex I found a good deal or not?

Question

Steve Oswald · Answer

@Wade Reeves I would suggest gathering all expenses for the property before making that analysis. Do you know about, water/sewage, trash? What about landscaping, pest control, or other possible utilities. Make sure you look at the leases to ensure you know what the rents actually are and what concessions are being made. At first glance, if no recurring expenses you would be just about breaking even. So it doesn't seem like a good deal unless you can get it for $160K or so (assuming no PM fees) if you are about cash flow.

Any option to subdivide the lot or put something else on it that could produce additional income?

Steve Oswald · Answer

@Maurice D. I shoot for 10% Cash on Cash for it to be a good deal, which is around $4182/yr.  That's at $175/per unit per month.  Also keep in mind I factored in 9% between CapX and repairs, assuming the age on the major systems isn't too old.  Also factored in an additional $600 for additional maintenance, like lawn care, or pest control.  If it looks like I can definitely up rents within the year to get it over that margin, I'll take the risk getting it below that 10% threshold.

Maurice D. · Answer

@Steve Oswald what cash flow target are you using to estimate the 160k?

Sam Shueh · Answer

Post the link  so other people can also comment. Good luck

Sam Shueh

Sam Shueh · Answer

Network, TOOLS, market place -top left screen.....

Sam Shueh · Answer

You need to do the analysis cash flow using tool, photos. down payment, interest rate, neighborhood type, condition like every deal posted.

Is the Duplex I found a good deal or not?

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