First of all, thank you to those who read this post and offer advice! I am looking to make a move and buy my first rental, an exciting and nervous time for sure! I have found a house that comes with a duplex in my local market that is listed for 400K. I am not sure if this is a good deal or how to go about calculating expenses like taxes, and how to calculate how much I could rent it out for. Any advice on how to analyze this deal and any first time buyer advice would be really appreciated, thank you!
Here is the link to the property for more details:
@Chase Griffin Use the BP calculator to look at cash flow, cash on cash return, etc. You can use rentometer/zillow/etc to gauge local rents. If you want a quick and dirty (but not always super accurate) way to estimate expenses, you can use 5% of rents for repairs, 10% for CapX, 8% for Vacancy, and 10% for management fees. You may also be able to get tax information off zillow or your county assessor's website.
according to zillow the property tax $2182. You can check this by searching for the county tax clerk. usually there is a website that the county uses. To find what properties rent for you can use a website called rentometer.com. You can also do a search on craigslist to get a feel for the market. search county, how many bedroom, bathroom, etc. Also, because its a multifamily it might be posted on loopnet.com which deals with commercial properties they usually list CAP rates and rental averages in the area. Good luck hope this helps
@Chase Griffin the above stated information is pretty much the basis that I'm going off of for my BRRRR I'm working on, I would go a little lower on the CAPEX to maybe 5% if I am doing alot of renovations up front and from what Zillow says they are. I would also call 3 property managers in the area and ask them about what they think the duplex would rent for, what's the vacancy rate look like in the area, and how is the neighborhood to have the types of tenants you will have to factor in for your numbers.