Deal evaluation review
I'm looking at a duplex . 165k purchase price. 25 percent down on dscr loan. Light rehab, maybe 20k total. Units rent for 1700 each. C class neighborhood. Paying 8 percent for management. Taxes about 4k.
puts cap rate around 14 and coc around 15
its my first property. My end goal is around 10-12k monthly in passive income in 10 years.
1) are you taking this deal knowing it's property 1 with intention of getting 4-6 like this in the next 2-3 years.
2) my thought is keep cash flow to reinvest until I get to 4-6 . Then aggressively pay down. I have enough liquid now to buy 2-3 more properties just like this. Hopefully 2-3 or more of the 5-6 total would be BRRR I can cash out and not leave the liquid capital tied up.
thoughts on this? The property , approach or anything else?