Updated almost 6 years ago on . Most recent reply
Should I buy this duplex? It seems like a good deal.
I have a few duplexes and debating if you should buy anymore. The prices has increased in the area, and deals are limited. I came across a foreclosed duplex selling for $75k. Downstairs is empty and can be fixed up really nice for $30k (new electrical, skim coat walls and paint, new doors, new bathroom and kitchen, new windows-old windows are ok). I can get by for $20k renovation if I forgo the windows. I can rent for $1,250. Upstair is occupied and paying $1k. The apartment is in decent shop. Tenant wants to move out after all the issues with the bank. If tenant moves and I spend another $20k rent would be $1,350 per month. I actually want her to stay and pay $1k so I don't have to do any more work. Taxes, Insurance, water/sewer will be $10k. Total investment will be $110k (just renovating downstairs) with gross rent of $2,250 per month. ROI will be $17,500 or 16% assuming no vacancy. What would you do?