I'm still in search of my first duplex. I've found one I'm interested in and currently talking with the owner. It's located in a low income area, but a new developer is trying to turn the neighborhood around and bring new business in.
Bottom unit is 2/1, upper unit is 1/1. Separate electric meters.
Needed repairs: 15k
Rent income: M-850 A-10,200
Taxes: M-43.60 A-523.15
Insurance: M-45 A-540
Total expenses: M-359.10 A-4309.20
Net cashflow: M-490.90 A-5890.80
Property appr rate: 2%
Rent appr rate: 2%
No debt service. I'm paying cash for my first multifamily. I can always get a mortgage after repairs are made if I decide to acquire more properties quickly. I also think he's a bit negotiable on the asking price. The last thing left to do is verify needed repairs. I think this will make or break the deal.
What do you think? What am I missing?
Looks good to me. Just make sure you do your due diligence on the repairs and line up your PM beforehand
Agree - at face value that looks good. Beyond repair costs, make sure you're comfortable/conservative with your target rents and vacancy rates, those are the biggest components (to me) that can make or break things.
Thanks for the feedback. Someone else has it under contract.
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