Help analyzing the deal
Hello fellow investors!
I’ve found my first property, am in negotiating stage right now. This is a duplex 2 beds and 1 bath each unit looks like, I can’t see the other unit because it’s rented. They wanted $169K, dropped to $164.5K the same day when I went to see it. The first floor needs full rehab, structural issue estimated at 12K. The resell price is in $265-275 with moderate rehab done, upper end SFR’s resold in $300’s. The property is near the campus so there shouldn’t be a problem renting. The plan is to fix one unit, rent it and move into the other one in 6 -8 months, once my lease is done here. Rents at $1000-1200 per month
Now, the deal - I’m offering $150K without seeing the top unit yet, no idea how bad it is. I’ve put a contingency to see the top unit plus inspection, both are being negotiated to take out, with a counter of $155K, makes me nervous. I’m going to do 203K on this one, estimating around 50-55K in repairs for both units. I’d like to not finance all of the repair expenses, but use no interest Home Depot/Lows financing of some of the repairs, keep it as cheap as possible.
Thoughts? Questions? Suggestions?
Thank you!
Tetyana