Buying both sides of a duplex
Asking price - $179,000
Hoping to get it for $160,000
Unit 1: 2 bed 1 bath - needs about $10,000 in work, unfinished basement but possibilities
Unit 2: 2 bed 1.5 bath - Needs $10,000 in work, basement very poorly structured and partitioned off, but can keep the structures
Area - B- / C+
Rent - $1300 - $1400 per duplex
I will be managing this property, my dad will be assisting and contracting much of the work out. Running the numbers off of my spreadsheets and using the 50% rule I see this property cashflowing combined and conservatively about $350/m with a return of about 12%+
Sidenote: The current owner lives on the 1/2 and may be open to renting for a few months while they wait to find their new home and they just do not want to deal with renting out the other side. Would you recommend giving them a lower rent rate for 6 months to at least start getting cash flow while I fix up the other 1/2 of the duplex? Does this cause more headaches in the future or is this a good idea?
Any comments, concerns, criticisms are welcome! This would be my second property and if any important information is left out, I am more than happy to include it and make connections with fellow members! Thanks guys!