SFH / possible duplex?

Question

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?

Laila M. · Answer

agreed.  We decided to pass on this deal.

Account Closed · Answer

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.

James Irwin · Answer

missing meters, usually means a rewire or bring up to code both of which cost alot

Laila M. · Answer

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.

3) Insurance??

Account Closed · Answer

ur title is screaming that u should check with the city if 2fh is possible in local zoning, if u havent by now.