San Antonio, TX · Member since 2015 · 35 posts · 12 votes
Need some help figuring out if this is a good deal because I'm not familiar with the Corpus Christi Market.
I came across a duplex in the Corpus Christi, Tx area. It's located near highway 286 & 37. Each unit has 2bed/1bath and approx. 720sqft (1456sqft total) there are some cosmetic repairs, but nothing major that I can see. Owner states being able to rent $650 each and asking $70k. Owner owns property free and clear.
What type of deal are you looking for? Wholesale? Flip? Buy and Hold? I am assuming you want Buy and Hold. We need additional information to give a reasonable response.
What are comps for the area? You need to know if the asking price is within the market range. You do not want to over pay. Also, find out the Rental Market rates for the area. Is $650 what he is currently receiving for rent?
What type Financing would you be using? Terms and Mortgage payment?
Next we need the Pro forma Cash Flow analysis. What are the known expenses? What is the Vacancy rate?
Based on a lot of assumptions this may be a good deal. However, I strongly would advise you to be very diligent and complete a thorough investigation to confirm all the facts. Use a Realtor to get comps and rental market data. Try to get actual documents from the Seller.
If you make an offer and put the property under contract be sure to include appropriate contingency clauses.
What type of deal are you looking for? Wholesale? Flip? Buy and Hold? I am assuming you want Buy and Hold. We need additional information to give a reasonable response.
What are comps for the area? You need to know if the asking price is within the market range. You do not want to over pay. Also, find out the Rental Market rates for the area. Is $650 what he is currently receiving for rent?
What type Financing would you be using? Terms and Mortgage payment?
Next we need the Pro forma Cash Flow analysis. What are the known expenses? What is the Vacancy rate?
Based on a lot of assumptions this may be a good deal. However, I strongly would advise you to be very diligent and complete a thorough investigation to confirm all the facts. Use a Realtor to get comps and rental market data. Try to get actual documents from the Seller.
If you make an offer and put the property under contract be sure to include appropriate contingency clauses.
San Antonio, TX · Member since 2015 · 35 posts · 12 votes
9y
John Leavelle the only thing I have as far as comps so far is the appraisal that Nueces County has on their site which is $81k. Also I have found that the rent for similar places are going for $700-$750. The deal is a cash deal, so I'm trying to find someone who is familiar with that area of town so I can get some tips as to if it's a good rental already, etc.
Problem Solver · Corpus Christi, TX · Member since 2015 · 13 posts · 14 votes
9y
A thorough inspection will be the way to know for sure if its a good deal and of course the asking price. Things to watch out for:
1. Does the property have wind storm certification. Google Corpus Christi Wind Storm Certification to learn more about that.
2. Have hydrostatic testing on the plumbing. It's about $100.00 but that is an older area of town and I've run into broken clay and cast iron pipe, and plumbing nightmares that ran costs way over budget.
3. You said this place is near 286 and I-37. The new Harbor bridge project is going to be connecting into I-37 in that area. That could be good or bad. Good would be if you have rentals available for bridge workers. Bad would be if you can't rent the place because construction restricts access.
San Antonio, TX · Member since 2015 · 35 posts · 12 votes
9y
Brian Banks thank you for the information. The property does have a windstorm certification and is actually located more towards the Del Mar District off Crosstown. So as far as construction goes, the only construction in the area is off Ocean Dr.