So are offer was verbally accepted and we should have the paperwork today to move forward on a 2 unit 2br /1bath duplex. 232k
Unit 1 has tenants paying $1100/m they cut the grass, shovel snow and have been there 11years.(they get $100 off a month from $1200)
women asked for new stove, new washer and for the bathroom to be redone, subfloor by shower is bad. (total about $3000)
unit 2 needs some light kitchen reno - stove and cabinets redone, flooring. New carpet in the bedrooms and some paint. Bathroom has recently been remodeled . All in all about $6500.
rent is $1350-$1400
My thing is i am looking to cash out refi to buy more property in 6-9months. But with the tenant in place i will not be able to replace flooring and update unit enough to really force apprecaition.
Any thought or insight would be greatly apprecaited. ARV should be around $270,000 if other unit is completed. That would give me about $30k of the $80k cash into property. Down payment, closingnand repairs.
mortgage will be $1370 and rental income will be $2450.
what do you guys think? Thank you in advane
My opinion is that if people want cosmetic upgrades, they find a property that has those things, or purchase their own property with those updates, or pay for the upgrades themselves. Safety and habitability issues are different.
i agree with you there, the subfloor and bathroom need to be done. So i should ask the tentant to move into the empty unit for a few weeks. since they will be out and i am looking to increase the value of the property, do i redo the floor and make the small upgrades that will increase the overall value while they are out?
again they have been there 11 years im not going to go over board just freshing up to cash out refi down the road
i appreacite the feedback