little help

[Jessica Sexton]

I found a good deal (or so I think) on a 3 unit duplex. The listed price is 104,000. It was sold about 2yrs ago for 256,000. The estimated value on it that i came up with was between 232,000-240,000. (I am, as recommened about to work on getting an appraiser to take a look at it) The properties are all in good condition and are ready to rent out. They are located in a decent area that is growing. The 2 3/2.5 duplex could rent easy for 750 and the 2/2 could rent at 695. After looking at the taxes, mortgage, ins. and misc. stuff I figured my monthly cashflow would be about 416.00. Am I missing anything out of this? Did i figure it all up the correct way?

[Jon Holdman]

Quick analysis:

Rent: $2195
Expenses: $1098 (50% rule, see sticky threads in Rental Property forum)
NOI: $1097
Payment: $692
Cash flow: $405
Cash flow per unit: $135

Nice!

When you say its listed for $104K, do you mean on the MLS? If so, why do you think the value is higher? A property is its own best comp, and if this one sells for $104K, and doesn't need any work, then that's probably the true value. If its really worth $232K and its publicly offered for only $104K, why hasn't it be quickly snapped up?

If you think the values are correct, why don't you already have it under contract?