Simsbury, CT Small Duplex Deal Analysis

7 Replies

Hello BP,

Im closing on a small 1240 sqft duplex soon. The home is a town house style Brick one level 2 family. Directly across the street there is the Farmington River and visable from the living rooms. The home is conveniently located close to restaurants, business, parks, and the highway. I plan to renovate maybe 15k total to increase rents to 1000$ each. Please give your input and let me know how I did?!

Simsbury, CT

Location B++

Listing Price- $179,000                       Water/Sewer- $110/Monthly               Heat Source- Electric Baseboard (tenant paid)          

Contract Price- $163,000                    Garbage- $34/Monthly                     

Appraised  Value- $180,000                Owners Electric- $22/monthly            

Current Rent- $1300/ 650 each          Home Owners Insurance- $41/Monthly

Market rent- $1750/ 875 each            Taxes- $3,924/ Yearly

After Rehab Rent $2000/ 1000 each    Interest Rate- [email protected] 30 years

Updated about 1 month ago

Down Payment- 25%

Are these 1 BR units.  Looks solid so far from what I see in the numbers.  Remember that house renting is not house flipping.  So the upgrades you make should be focused on what the tenant would value/ updating to bombproof. LVP as a flooring, solid plywood cabinets, resilient counters, as this looks to be a side by side- maybe privacy fencing the back yard.  

Originally posted by @William Collins :

Are these 1 BR units.  Looks solid so far from what I see in the numbers.  Remember that house renting is not house flipping.  So the upgrades you make should be focused on what the tenant would value/ updating to bombproof. LVP as a flooring, solid plywood cabinets, resilient counters, as this looks to be a side by side- maybe privacy fencing the back yard.  

Yes, these are 1 bedroom units. I believe that they will be appealing to the 55 and over community because they are one level and located in a safe area. 

@Patrick Sheridan this looks like a solid deal to me. agreed with above, focus on what you can get w/ ROI on rentals. If I was you, i might explore alternatives for heating source since electric heat can be a turn off for perspective tenants, especially in nicer areas like Simsbury.

Originally posted by @Ryan Allison :

@Patrick Sheridan this looks like a solid deal to me. agreed with above, focus on what you can get w/ ROI on rentals. If I was you, i might explore alternatives for heating source since electric heat can be a turn off for perspective tenants, especially in nicer areas like Simsbury.

Thanks Ryan. I was thinking of installing a Mini split heat pump that can provide heat and AC.

@Patrick Sheridan

This looks like a solid deal. The roof looks a little old so I would factor in 10k in 5-8 years. I actually really like electric baseboard. It never give issues. Sure it can be a turn off to some tenants but I think not enough to warranty the additional $ of a split. Then again it’s dependent on the area. Baseboard is the heating of choice for midlevel rentals in my area so I have no issues renting. I would ask around and check out rental ads to get a better idea. Don’t over rehab. Good luck but either way I don’t think you go wrong with this deal.

Originally posted by @Anthony Vander Meer :

@Patrick Sheridan

This looks like a solid deal. The roof looks a little old so I would factor in 10k in 5-8 years. I actually really like electric baseboard. It never give issues. Sure it can be a turn off to some tenants but I think not enough to warranty the additional $ of a split. Then again it’s dependent on the area. Baseboard is the heating of choice for midlevel rentals in my area so I have no issues renting. I would ask around and check out rental ads to get a better idea. Don’t over rehab. Good luck but either way I don’t think you go wrong with this deal.

 Thanks Anthony,

I plan to replace the roof and gutters first. shouldn't be more than 7k. I was attracted to the Electric heat because there is zero maintenance involved. Coming from dealing with constant issues with steam heat in my other properties electric heat was appealing to me. From what I have researched about 25% of smaller 1 bedroom rentals in my area are electric heat. I plan to paint the interior grey and cabinets white with granite countertop. Reglaze the tile in the bathroom and shower, new vanity, new toilet and new LVP flooring throughout the unit.