Pros and cons of this 66% ROI with duplex rentals

[Chuck L.]

Hi members,

I'm a long time listener of the podcast, first time visitor of the site.

Pros and cons of this offer: 60k down (10%) for 6 duplexes in Indianapolis

All the duplexes have tenants in and bring in 1,100 per duplex (some leases are up this year)

Under contract; buyer required to pay 550/duplex/month for 10 years.

Buyer pays for all maintenance etc

Seller pays for liability insurance and property tax

Will set aside 30% of rent for repairs, vacancy, and property management

Thanks in advance.       

[JR T.]

Budget 50% of your rents for those expenses in that sort of property.