Duplex, but only selling 1 unit.
In my market, I wanted to get into duplex's. Upon further investigation nobody is selling a duplex. The only duplex available is one side of the duplex. I have run the numbers and it will cash flow really well, but my question is wouldn't that put a tremendous strain on me only owning half of the duplex. What would happen with roof repairs, or leaks, or anything else that could happen as a result of only owning half of a building. What would you guys do in this situation?
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@Parker Staten Rish did you factor in your CoCRoi too? For me at least, I always factor that in as well as Cap Rate too.
As far as doing budget in terms of how much cash flow you’ll get, I try and shoot high with my numbers by also factoring in a Management fee. Usually 10% vac, 10% cap ex, and 10% management. $150 cash flow a month isn’t bad at all but in terms, I’d try and run the numbers as the “highest” you can so that you aren’t shorting yourself when you actually have a tenant.