Duplex Analysis in a B/C neighborhood
I am looking at a property that needs some work. It's not a show stopper, but I think it cash flows and wanted to get some opinions to see if there's something I'm missing and if I should run away.
Duplex, both units are 2/1
B/C neighborhood, but it is improving and I could see it being a solid B within 5 years or less
Asking $90K. The property needs $15K - $20K in updates, but the tenants have both said they'd be willing to pay a higher rent if the upgrades are made (amount of increase to be negotiated)
Both sides rented out to tenants paying $525/mo. who have been there 5+ years and, per speaking with them, have no intent to leave
Putting 20% down
Hopefully, I would be able to get the price down a bit, but there's still a lot of moving parts and I am just wondering if it's a major mistake to even consider buying this place.
| Monthly Summary | |
| Rent In | 1,050.00 |
| Mortgage | 344.55 |
| Insurance | 62.50 |
| Prop Tax | 191.67 |
| Other (Lawn and pest control) | 150.00 |
| Misc Repairs | 83.33 |
| Capital Accrual | 105.00 |
| Net Cash Flow | 112.95 |