Warwick, Rhode Island. Side by side duplex with long term tenants. Current monthly rent toll is below market at $1700. (Previous owner dropped rent for one of the tenants from $950 to $700).
Newer roof, updated mechanicals, and property has been required. The property is connected to sewers and city water. One unit is 3 beds, 1.5 baths, and the other is 2 beds, 1.5 baths.
215/217 Knight Street, Warwick, RI
Correction. Rent ROLL*.
Correction. Property has been REWIRED*
I would have to see the property tax rates and insurance costs. You might have it better up there with state income taxes shifting the burden, but in the south we get killed on property taxes. They could very well wipe out a deal with those numbers. It would be close, however, and things like self management and self maintenance can make or break a deal like that.
Have you been inside the property? A quick craigslist search indicated that even a 1 bedroom /1 bath could go for $800-1000/month, so depending on condition I don’t know why you wouldn’t be expecting to move the rents to 1200-1300/month or higher, again depending on interior condition and neighborhood. Property taxes at 3k seem in line with the area.
Sam Magina I didn’t increase the rents for several reasons. I just closed on this property and listed it on the MLS. I do not want a tenant turnover while it is listed, and the property cash flows nicely as is. These are temporary rents during the sale.
We went under contract with a buyer yesterday for slightly below asking, so it is progressing nicely.