Buy or not to buy: Duplex
Looking for my first deal and found a contender I wanted a second opinion on. This deal is in the Canton, Ohio area, but in a middle class suburban neighborhood on the NE end.
- Duplex with both sides rented at $625 each ($1250 total monthly income), seems about market rents for the area
- Asking $120,000
- Annual taxes are $2400
- Been on the market since November
- Repairs appear to be minimal, still need inspection (rentable, but not updated)
What other information am I missing?
Do all banks require 25% down payment on an investment property, or should I shop some local banks and see if I can get away with 20%?
Most Popular Reply
From what I understand things have changed and 25% is required on a non owner occupied double.
I also would pass on this deal. With these numbers I wouldn't even buy this in Columbus OH. And I think Columbus has stronger appreciation chances then Canton does.
If anything use the cap rate as an inverse equation and run a 9 or 10 cap and write an offer at that amount.
Best of luck!