Deal I currently have under contract in a C neighborhood. This will be my first investment property. How did I do?
Looks good when I look at your cap and roi numbers but I have a question. You say its a duplex but you spread sheed shows 3 units? Are you numbers based on 3 units in a 2 unit building? If so then your numbers wont be nearly as sexy as they appear at the moment.
The property is actually registered with the county as a duplex but it has 3 separate units. I initially plan on managing the property myself. Using a 5% vacancy rate, 10% for repairs and 10% for cap ex. the numbers are ...
Deal looks very good to me but your insurance does seem way too high!
The deal looks good!
A couple of things to keep in mind though. A C area might give you higher vacancy and higher bad debt. If you get good residents that will be a great, but if you get someone who doesnt pay rent you might find it difficult to evict them, and find new residents. You might even have higher turn costs.
Also, have you had the property inspected? It pays to have a home inspector come and do an inspection to highlight what CAPEX you will have in the near future. Better to know, than to guesstimate CAPEX costs!
Best of luck.
Christian Brodin, TheApartmentInvestor | http://www.theapartmentinvestor.com
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