New York, NY · Member since 2016 · 24 posts · 3 votes
Hello all,
Putting in an offer on duplex- would love feedback! (Each is 1bed1bath)
**I am OOS so will pay premium on PM/ lawn management etc
approx 6% rate 162K Total, DP 24.3 K which is 15%, seller pays all closing costs. (30 year conventional loan)
Both units are completely redone. i will have to furnish appliances (refrigerators, stoves, W&D) for short term rental. Great curb appeal.
can SAFELY expect approx 1200/ unit per month (I am furnishing both units for short term rentals- approx 10K total). In hot market could get 1600/ unit.
Deal or no deal? would you pay for closing costs on top of all this? (5-10k)
Its all about the return you wish to receive on the asset. if they are short term rentals I a assuming you be making more than $1,200-$1,600 per month? I also assume depending on where the property is, whether in a cold or warm location, will depend on when most of your traffic occurs, whether during the summer or winter or all year around?
The more money you put in, the more you should be aiming to get back faster. I think depending on what your taxes , insurance, cleaning and PM fees would be, this may or may not make sense!
Putting in an offer on duplex- would love feedback! (Each is 1bed1bath)
**I am OOS so will pay premium on PM/ lawn management etc
approx 6% rate 162K Total, DP 24.3 K which is 15%, seller pays all closing costs. (30 year conventional loan)
Both units are completely redone. i will have to furnish appliances (refrigerators, stoves, W&D) for short term rental. Great curb appeal.
can SAFELY expect approx 1200/ unit per month (I am furnishing both units for short term rentals- approx 10K total). In hot market could get 1600/ unit.
Deal or no deal? would you pay for closing costs on top of all this? (5-10k)
thank you all!
Sounds like the deal has potential. Check the area and surrounding area for legislation on STRs. If you are going in with only one play (as a STR) make certain what the neighboring comps look like. Have you visited the area, have you checked what neighboring comps look like and average occupancy? Also, STR PM can vary widely from location to location. Have you started to source your PM? Looking local or looking to hire larger nationwide outfit?
Hard question to answer, deal or no deal. Depends on your specific goals. Is this a long-term play? Is this an appreciating market? Other interests, family, vacation spot, etc. Just a few questions to consider. Hope it helps.
New York, NY · Member since 2016 · 24 posts · 3 votes
4y
Central Texas! No flood zone and not tornado alley.
I could clear about 1400 after the mortgage but this is before the PM, lawn maintenance, wifi/ utilities & etc.
It would be approx 1K mortgage. Conservatively I aim for 1200/ unit. I think the duplex is a great deal but it wouldn’t be a home run by any means until well after the recession.
The competition is slim and outdated. In a hot market (1-2 years from now) I could foresee 1600/ unit.
Would you take the deal? On top of possibly already spending around 20k (appliances & furnishings) would you pay additional 2.5K for closing?
New to STR so very unsure if this will be a solid deal!
Putting in an offer on duplex- would love feedback! (Each is 1bed1bath)
**I am OOS so will pay premium on PM/ lawn management etc
approx 6% rate 162K Total, DP 24.3 K which is 15%, seller pays all closing costs. (30 year conventional loan)
Both units are completely redone. i will have to furnish appliances (refrigerators, stoves, W&D) for short term rental. Great curb appeal.
can SAFELY expect approx 1200/ unit per month (I am furnishing both units for short term rentals- approx 10K total). In hot market could get 1600/ unit.
Deal or no deal? would you pay for closing costs on top of all this? (5-10k)
thank you all!
Sounds like the deal has potential. Check the area and surrounding area for legislation on STRs. If you are going in with only one play (as a STR) make certain what the neighboring comps look like. Have you visited the area, have you checked what neighboring comps look like and average occupancy? Also, STR PM can vary widely from location to location. Have you started to source your PM? Looking local or looking to hire larger nationwide outfit?
Hard question to answer, deal or no deal. Depends on your specific goals. Is this a long-term play? Is this an appreciating market? Other interests, family, vacation spot, etc. Just a few questions to consider. Hope it helps.
I aim to hold long term. Its not a big city so its not appreciating as fast as say Austin or the rest of Texas but its still Texas! The town is growing and already quite large. Its not a vacation spot or vacation area, I am aiming towards a niche market to be honest... but then again its a rather inexpensive duplex/ newly redone so I think it could really make up for lack of it being a "sexy" deal per se....