DUPLEX FOR SALE
I need advice on a duplex i am buying in norfolk va its a 3br 1.5 bth and 2 br 1 bth home thats on market for 199,500 asking price. rental income is 1725 monthly. expenses are 180 dollars on water bill. I will purchase this using my va loan. whats a ghood offer based on the number its o down and no pmi payments pretty starait forward. monthly insurance around 65 dollars and yearly taxes are 2077 yearly. What is a good offer based on those numbers any help would be greatly appreciated it.
I would like at the comps in that area and go from there. Keep in mind that a lot of the rules of thumb you read on BP will not apply in Norfolk. What area of Norfolk?
Use the new buy and hold calculator just posted here on bigger pockets for buy and hold properties. Is the rental income 1725 for just one side? Because if you're using your VA loan to purchase this property you have to occupy it with 60 days of closing and remain in occupation for at least 365 days.
Make an offer that makes this property fit into the 1 percent rule and if you can do better you should. Most people on here will tell you to run the other direction if when both sides are rented it fails to meet the 1 percent rule. Some people even say it needs to be 2 percent but considering you're area you'll be hard pressed to find that.
The only exception to the must immediately occupy rule is if you have renters with leases already in place. Then you might not have to live there. I purshased two properties in Corpus Christi using my VA loan. It's a great way to get started.
Yes total income is $1725. I get 975 from one side and $750 from the other. I do intend to occupy the unit that gets $725 a month. As far as comps there are hardly any sales within half of mile radius. I dont know what the 1 percent or the 2 percent rule please explain. Thanks
You will have to move in with in 60 days of closing, but there is no stated time frame you have to stay there w/ a VA loan. Only moving in and the intent of it being your primary residence.
@Nicholas Kless you have to have one of them leave to move in. Otherwise, you wouldnt be able to purchase w/ a VA loan.
Hey Sedat, I'm new to all this as well but trying to gain as much knowledge before going into my first investment deal. The 1% or 2% rule is pretty simple... you have to try and get 1%or 2% monthly rent based on what you purchased it for. So if you buy a SFR for $100,000 you have to try and rent it at $1000 per month or $2000 per month to meet the 2% ....based on the price for the duplex looks like it's not meeting the 1% rule...
Mr Nicholas I am ware of the va occupancy law. I plan on moving after purchase.
@Nichola Kless hey devil dawg, so you are saying you can get out of moving in if you have leased tenants in place? I'm talking in regards to using a VA loan. I'm retired and haven't used my VA yet.
@Shelton Love, no you can not. You would have to have one of the tenants leave if you are using VA.
