Thoughts from members - Deal or Not?

[Mark L.]

Hi BP members!

Newbie here that is excited to be part of the community and submitting my first post. Have been looking for potential deals in my area and found one that is not in the best area of town (or best looking) but not horrible and rated as a generally safe neighborhood. This is a duplex that is not bad looking on the inside of either unit. One unit rents for $800 (it’s on the nicer street) and the other for $700. Has existing tenants and a property manager with total rent income of $1500/month. They are asking $199K, looks like positive cash flow if I can get it at a reasonable price ($190K or less); figuring financing and adding in ~ $200 for the property management (don’t know how much they make at this point), possible $250+ in cash flow.

Would need good appraisal/inspection and figuring in around $10k for any repairs/improvement. The comps/estimates in the area are around the same price but the tax assessment in 2016 had this at $47.6K, which makes me a little weary. Listing details below- any insight is appreciated (I assume I am missing something)!

Multi-Unit Information: $199K

Multi-Family Features

• Total # of Units: 1
• Total # of Buildings: 1
• # of 2 Bedroom Units: 2
• Tenant Pays Cable, Tenant Pays Electric, Tenant Pays Garbage, Tenant Pays Water

Unit 1 Information

• Rent: $700
• Sq. Ft.: 783
• # of Beds: 2
• # of Full Baths: 1

Unit 2 Information

• Rent: $800
• Sq. Ft.: 783
• # of Bedrooms: 2
• # of Full Baths: 1

Financing, Location Details

Finances & Taxes

• Has CC&Rs

Parking & Garage

• # of Covered Spaces: 2
• Less than 1 Space/Unit, Carport

Building Information

• Wood Construction
• Stucco Exterior
• Shake Roof

https://www.redfin.com/CA/Modesto/816-Colorado-Ave-95351/home/19971263