Updated almost 5 years ago on . Most recent reply
Pass or offer on this duplex?
I’m looking for some second opinions on a duplex I’m looking at.
This would be my second duplex I’m purchasing. I’ll break down the numbers, but I have some concerns i wanted to get your thoughts on.
List Price 114,500
Top unit rents for 550
Bottom unit rents for 750
Down payment - 25%
Interest rate is 3.125
5 % maintenance
7% cap ex
15% vacancy
5% property management
Taxes - 125/month
Monthly expenses - 1,054
Cash flow 245/month
16+% 5 year annualized return
Numbers are run at a 95k purchase price. It’s been on the market for a month and no offers have been made yet.
Currently both units are rented on month to month agreements.
All utilities are paid by tenants, even water. Both have sign affidavits with the city in the even water bills are. It paid, it’s not the landlords responsibility
MY CONCERNS
Top unit does not have laundry/dryer included - talked about adding it in the basement and is doable without invading bottom units space. Does anyone know what this would cost to add? Ballpark..
Property is at the bottom of a hill and water in the basement has been a reoccurring issue. When I saw the property, the owner’s contractor was there Watweproofing the basement with foam, concrete injections and drylock paint.
House is on a corner and has two small driveways - both are both in pretty rough shape.