Updated over 9 years ago on . Most recent reply
Looking at a Southeastern Missouri Duplex
Ok investors, here's the scoop. I've tried to cover all the bases on this duplex I'm looking to wholesale to an investor. I want him to have a good experience with it so I'm doing loads of research on the property.
Purchase price: $85,000 cash ($90,000 once you add my wholesale fee)
Repairs needed: $5000 (I know it seems low but I've walked this property and it is sound.)
Annual taxes: $998.00 (as of 2015)
Both units are 2/1 but can be converted into a 3/1 with no rehab. Just reutilizing unused space.
Area rents draw average of $750.
Utilities are on one meter, since it was formerly a single family. I wouldn't split the metering, I'd continue to pay utilities but increase rents to cover costs.
At $1450 ($725/unit/mo) with 8.3% vacancy, 10% CapEx, 6% for repairs, $100/mo for insurance, $83/mo taxes, and all utilities accounted for, this property cashflows around $650/mo. What am I missing? Is this a good deal?