Is this a good deal?
Hi all,
I am new here to Bigger Pockets. I have been searching for ways to gain some financial freedom in my life and have recently decided I want to use real estate investing to do so. I have been studying bigger pockets, listening to podcasts and reading over the past few weeks about what it takes to become successful. So, I found this property and it jumped out as something that would be an awesome deal. However, since I am so new to the game, I'd love some feedback from more experienced investors.
The property is a vacant duplex in South Jersey. First floor: 3 bed 1 bath; Second floor: 2 bed 1 bath. Asking price $50,000. Inside has been completely renovated. Mortgage payment would come out to just shy of $400 per month.
The listing agent noted in the listing agent noted that it rents for 1000 per unit. I have a sneaking suspicion that the agent is a bit off on their numbers. IF this is the case this would more than satisfy the 2% rule... in fact it would double it! My thought is that even if the property rents for only half of the agent's estimate, i'd still be in good shape.
Some comps in the area (not perfect because not many similar listings in the area)
3 bed 2 bath duplex: 1300 per month
1 bed 1 bath duplex: 600 a month
1 bed 1 bath apartment: 799 a month
Another issue is that this property is not in the best of neighborhoods (house across street is boarded up, poor school system). C neighborhood at best. Not sure if this is an ideal scenario for first time landlord to take on with the potential tenants the property would attract.
Sorry, long winded post, but please let me know if you guys have any thoughts about this deal.
Thanks!