I am a new-ish investor in my area (Tuscaloosa, AL - near Birmingham), with a couple of properties. Looking at a SFH for long term rental or flip. Is this a deal? Or too much work for a new investor?
It has been on market for > 500 days. Formerly a rental home in a desirable location, it has two "units": one up 3/1 and one down 1/1. Possible electrical issues - had 2 meters but one has been removed - and possible that city could require permits - something I have never dealt with.
ARV ~ $110K.
Repairs ~27K (7K up unit / 20K down unit). May need new roof in a few years.
Poss. Rents $800 up / $450 down
Offered 60K, seller countered at 74K.
Should I counter at 64K or move on?
ur title is screaming that u should check with the city if 2fh is possible in local zoning, if u havent by now.
MFH is OK there. The reasons for the second unit being "possible" is:
1) doesn't a duplex have to meet certain size req's?
2) repair costs are high for second unit & may require city permits.
missing meters, usually means a rewire or bring up to code both of which cost alot
i'd not count dual rents in a sfh until factoring in reinstalling the 2nd meter and possibly pulling permits and lots of $$$ all in all, to get it passed as a 2.
agreed. We decided to pass on this deal.
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