How much would you offer on this duplex?
Hey gang,
We recently got a lead on a duplex from a guy who wants to move to another state to be closer to his kids. I've never done an evaluation on a rental property and I'm deep in the throes of analysis paralysis. If I may I'd like to throw some details at you and I welcome any advice you might have.
He never told me how much he wanted for it, he only asked that we make him an offer. The tax records tell me that he bought it in 2006 for $140,000. He also said that he took out a second loan on it and understands that he may have to put up some money to get out. He's not expecting retail pricing.
He had it listed last year for $189,900 but then the listing was removed. This year he had it listed for $179,900 and then it was removed.
It was built in 1920 and each side has 2 beds (plus one bonus room) and 1 bath. The appliances aren't super old but aren't new either. The entire place is all very well maintained. In fact, they had a fire about 5 years ago in the attic so they had to replace most of the roof and have everything inspected and brought up to code.
One side has had the same tenant in there for the last 15 years and he's paying $1000 a month. The other side is about to have a new tenant in there (who is about to sign a year lease) for $1200 a month.
Taxes are $8248.50.
Each side is independently metered for all utilities.
We have one completed flip on the market now (which is under contract and on the way out) and another flip in progress. We weren't planning on holding any properties right now so we'd like to wholesale this place out, if possible.
What are your thoughts on this?