Rental Property Investor · Villa Rica, GA · Member since 2014 · 220 posts · 360 votes
Duplex
C class rental
Both 2 bed 1 bath
Tenents are in place but are c class tenents and are month to month
One rents for $575 and the other $600
Average rents are $650
Asking price 119k
How much can I offer on this property to make it work?
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
8y
@Byron Scott more information would be necessary to make any kind of worthwhile recommendations. One important aspect is; What is the market value of the property? What is the condition of the property? A newly renovated vs a dated but well kept property vs Dated with deferred maintenance would all figure into the value.
In my market that would be worth about 30k to me or maybe 50-60K to another investor.
Investor · Fort Wayne, IN · Member since 2013 · 152 posts · 126 votes
8y
I think even if you were getting $650 per unit you're still well under the 2% rule. I agree with Ned that more information is needed but just going by the 2% rule it seems it would be hard to cash flow on that property at that asking price
Rental Property Investor · Denham Springs, LA · Member since 2018 · 95 posts · 44 votes
8y
Some use 1% others 2% rule. To me it is all about cashflow. So factor in your tax, your insurance, your capex, your vacancy rate, your HOA if any and see if it makes sense to buy it @ 119k. Then play with the numbers (mainly the purchase price) to see what would work for you.
In this particular C class neighborhood I would put an offer between 70-80% of asking or less depending on condition.