How Much Would You Pay for This Duplex?
I'm looking at a duplex in a college town. The unit was built in 1962 and has two 1BR/1BA units about 600 sq feet each that show their age. If I took the duplex up to the prevailing new/fancy standard for rehabs in town (black appliances, new cabinets, fresh pergo floors, etc) I think they could each rent for $720-$800/month. Location is very good with direct bus to campus, two popular coffee shops nearby. Very safe neighborhood.
To hit that standard, it probably needs:
1. new roof (1300 sq ft?)
2. new windows (12 of them)
3. new floors in one of two units (600 sq feet)
4. updated kitchen
I'm guessing I might be able to do this and get the units up to snuff for $55,000.
I think the property has modest appreciation potential but strong rental growth potential. Neighborhood is mix of rental and single family, with SF homes showing strong appreciation.
Given all this, if you wanted $100/door, what would you pay for this duplex?