Duplex deal?
Asking price of remodeled duplex: $159,900. I'm assuming we can get the property for around $150,000 (been on the market over a month). It is a 2 bed/2 bath unit (x2) on quiet dead-end street with attached garage on each side and large lawn. Can I get some input on our numbers?
P&I = $814/month
Taxes = $280/month
Insurance = $100/month
Total expenses = $1,194/month
Projected rental income of $800 per unit = $1,600 total per month (all utilities paid by tenants)
Projected profit of $406 per month (minus any repairs). We will be managing this duplex ourselves to save that expense and gain some experience. Even with $200 per month in maintenance (which I doubt, it has been completely renovated), we're over the $100 per door threshold.
Issue I'm having is that it is currently owner-occupied so no rental history. We have excellent credit and down payment but it's obviously a risk buying without current tenants and I am wondering if we'll run into trouble with getting the loan because of this.
Thoughts?