Updated over 9 years ago on . Most recent reply
Duplex Analysis --- Seeking opinions!
Greetings all! If you would scrutinize this duplex opportunity I would be very grateful. I am writing the earnest money check this weekend. Please let me know if other numbers are needed. Thank you very much!
28 Ivy Street, Porterdale, GA 30014
Legal duplex, built in 1918, separately metered, one side currently occupied @$480, month-to-month. Other side vacant, in need of interior paint, water heater, cabinets in situ to be prepped, painted and hung, heart pine floors to be sanded and poly-ed. Most work to be done by me and crew. Electric has been upgraded but will receive a proper inspection. There is no HVAC --- no heat source! Researching ductless, split mini heat pump, one for each side. Current LL requires tenant to provide their own window rattler. All utilities paid by tenant. Exterior in need of a lot of work--- paint, siding repair, porch railing, landscaping, etc.
Goal: Force appreciation up then delayed financing.
Comps; mill town with many identical models. Sales within last 24 months at $21/sq ft. This one is $22.
(I could not get my spreadsheet to copy and paste to BP)
Revenue:
$480 current (will shoot for $600 for other side. WILL have repairs complete in less than one month, begin tenant screening)
Vacancy 10% $108
Projected gross annual revenue = $11,664
Property taxes $446
Insurance $500
Management 7% =$725 annual
Maintenance 10% = $1166
Advertising $100
Sales price = $35000
Down payment = $7000
$500 earnest money
Owner Finance 5% Simple Interest, 10 years, no penalty for early payoff
Monthly payment $245
Closing costs = $1500