analyze this duplex

[Thomas Handy]

I am planning to bid on a 2 bd/1 ba approx 600 sq ft ea side of the duplex that is in the process of foreclosure (possibly preforclosure).  Property is in lower middle class area of town and property will average $700 each side.

Starting bid $67,000 (no bids so far).  5 day auction.

Property will need stove, refrigerator, hot water heater, pipes for shower, and about 1 foot ceiling repair. Floor tile was in pretty good shape.  Wasn't able to check other half of duplex but repairs will be similar. Plan to follow up this week and have a contractor take a look. 

Will either wholesale the property to an investor or fix it up to rent out.  Just not sure at this point. 

Repairs -approx $10,000

Taxes -approx $170 month

Insurance -approx $110 month

Management fees - $0 (will self manage property which will be a first since it's close to where I live).

Question - are some lenders providing loans to owners with more than 5 properties?  

[Eric Black]

Hi Thomas,

My question is, if you weren't able to look at the other side of the duplex, how do you know the repairs will be similar? How do you know the kitchen hasn't been torn out, or pipes ripped out of walls, or if it's covered in mold? 

I would be very hesitant to bid on a property that I have not seen. 

There are lenders out there who will lend to someone with more than 5 properties but you'll have to do some calling around. I would start with small, local banks in your area.

Best of luck!

Eric