Deal analysis on MS Gulf Coast
Hey everyone just curious on others opinion of a possible deal in Ocean Springs, MS.
I am looking at two duplexes side by side in a small subdivision with working class tenants. They are currently all occupied with one unit renting for $1,000 and the other three for $900 per month.
So, gross yearly income of $44,400
Insurance quote is $3,000 per year
Taxes are $2,500 per property, so $5,000 per year total
Tenants pay electric and water.
The asking price is $540,000, which i know is very high if you are wanting the 1 percent rule. I would offer the $370,000 that is the 1 percent rule and see what the owner says. He is apparently highly motivated due to moving out of the state. I also will be needing to pay a property management company because i travel for work.
Thanks in advance for anyone opinion!