Hello,

I am a new investor in the Dallas/Fort Worth area and this is my first week on BP and I am about to make an offer on this duplex and needing help analyzing this deal. Exciting!!

The duplex is in east Dallas, a little bit to the south and is classified as south east Dallas. Listing price is $165k. It was a back on the market deal due to previous buyer's finance fell through. One unit is a 3/2/2 and the other one, according to CMA is 2.1.2. The smaller one is being rented for $700 with lease ends at the end of this year. A similar 2/2/2 updated unit on the same street is being marketed for rent at $1,050. The three bd unit is vacant and is listed on the market for $925. I believed it was rented for $875 before. The 3bd needs some cosmetic work which we estimate would around $2-3k. We don't know what the condition of the occupied unit but give it a round 4-5k budget to bring it to the $850-$900 rent range. The crime rate is not too bad per Trulia but some units in the neighborhood do have some metal bars on windows.

We did some math and estimated the cash flow to be around $200/month for each unit. Annual COCROI is around 11%-12%. There is not a lot of comps for duplex in the area but there one half duplex, almost identical to ours and fully renovated, sold for $75,000 two weeks ago. Another half duplex was sold in 2018 for $60k. Both were cash deals. 

the property has been on the market for 3 days and the seller had received one offer.

We think that if we want to get this deal, we will need to offer around $155k. But the most recent half duplex comp does not support this price.

What are your thoughts on this? Let me know if i need to provide additional details. Thank you all for help!