I am looking at a duplex in the North Dallas area. I would buy for $50,000 then rehab for $15,000
It would be around 1100 sqft total space or 525 sqft per unit plus 50 sq for laundry and utility (shared)
We would be renting for $700 a month per unit
I would buy cash and mortgage out after rehab.
Management $130.00 (this cost wouldn't be incurred but we budget for it for future)
Monthly Rent $1400
Cash flow $474
those are the numbers I was looking at, I think!
I am curious if this is a decent deal? How much a bank would usually lend on the property if the market value was 100k? Any other advice etc anyone would recommend?
That is an amazing deal. To me this seems like something is too good to be true. I have a nice duplex in Richardson that rents for 750 a side and I probably could get 800 but it is about 750sqft a side. but your not going to buy anything like it for anywhere close to $50,000 unless you have found an extremely motivate seller! Or its a duplex in an awful area and you might not get $700 a side.
Keep us updated!
Wow thats more positive feedback than I anticipated! Any ideas on how to finance the deal until I can get the bank to give me a mortgage for it?
@Lance Wakefield To get those numbers in North Dallas is practically unheard of. How did you come across this deal? If it is listed on the MLS I would be very suspicious.
I would recommend finding a hard money lender to finance for a few months until it is rented and cash flowing.
A bank is going to lend based on what the sales price is, not what it might be worth after you buy it. So, maybe 89% of purchase price. On the other hand, some will pay cash, season it, get a new appraisal, and then do a cash out refinance.
Did you get it under contract?
I did not find it on MLS
I have been doing a lot of research at the city and it looks like even though it was once a duplex they may not let it continue to be a duplex. I am doing further research and also looking to see if it is still reasonable as a 3/2. I am just having a difficult time determining rents for a 3/2 in the neighborhood but I dont think it will cashflow the same, maybe 1200 a month best case.
Ill keep you updated.
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