Exciting 2 duplex / 8 units near college campus

[Steve S.]

Built in 2001

2 duplexes - 1,650 sq ft each

4 br / 4 bath

Cap rate - 6.1%

NOI - $43,000

Asking price - $700,000

[Jerry W.]

OK, we need to know how much the rent is per unit, how much is insurance, taxes, are the rent rate at market rates, or below?  Will you be self manager having a property manager.  Are you renting by the unit or by the bedroom to college kids?  (You get more wear and tear from renting by the room but it can bring in a lot more money.)  Estimates on repairs, cap ex, and vacancy. (usually calculated using a percentage of total rent)  What has the historical rental income been.  It helps to know the general condition of the property and how much you will need to do in repairs and updates to rent.  I like to have an idea on how property values are moving (up or down) even though you cannot count on it.  What is the class of the property and neighborhood (class A to class d).  If you have it information on how long the property has been on the market and what you think it is worth.