Rahway, NJ · Member since 2013 · 13 posts · 2 votes
The seller wants 370000( the tax assesed value of the house is 426700) for his duplex. Each unit has 2 bedrooms and a bath with no major repairs needed, aside from carpet paint and a few appliances.They city it is located in is a good area, similiar houses have sold from 300000 on the lower end to 450000 on the higher end. Renting both units out could bring in 3000 month. Do you think i should take this deal?
Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
12y
Personally I do not base ANYTHING on the tax assessed value. How did you find this deal? Personally if I wasn't buying this through the mls I would want to buy it as close to 300,000. At $300,000 it get it to be 1%.
Honestly you are the only person who can say how "good" a deal this is going to be. It won't probably won't follow any of the 50%, 1% or 2% rules that you will see on this site.
Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
12y
Personally I do not base ANYTHING on the tax assessed value. How did you find this deal? Personally if I wasn't buying this through the mls I would want to buy it as close to 300,000. At $300,000 it get it to be 1%.
Honestly you are the only person who can say how "good" a deal this is going to be. It won't probably won't follow any of the 50%, 1% or 2% rules that you will see on this site.
Rahway, NJ · Member since 2013 · 13 posts · 2 votes
12y
I found it while visiting a friend who lives in the area, the owner had a sign out front. I then decided to take a quick walkthrough of the property and now im trying to analyze it deeper. Other two family homes have sold for less but required a lot more repair work.
Rental Property Investor · Brookline, MA · Member since 2013 · 1k+ posts · 777 votes
12y
I don't look at much that doesn't meet the 1% rule. Once you add everything up they tend to lose money monthly. Take a deep dive at the numbers and see if there is money to be made.
My best guess is that you'll crunch the numbers and find that this place is a good investment at 280-320k.
With that in mind, remember this made up rule: "if you're first offer isn't insulting, it was too high"