Duplex in Everett, rare find?
Hi all,
I'm a first time home buyer looking to house hack in the Boston area, and we've gone through quite the self-education experience. There is basically nothing within a 45 minute commute (bike or transit) with a decent capitalization rate (my minimum is ~4%). The entire market looks to have been squeezed into speculative buying territory, which I'm not comfortable with. I want a healthy backstop from rents to provide passive income.
We are currently having frustrating discussions with a seller (whose mother lives in 1 unit) over a 2-plex in Everett for $522k which needs ~$30k in repairs. The units are a 1-bed and 2-bed and market rents look to be ~$1400/~$1800 . I think my numbers are conservative, but I'm looking at ~3.8% cap rate with this purchase. Is this place a steal in this market? Should I just put up with the seller and snap this up?
Thanks for the advice!