Is this a good deal?

Question

Here is the link.

Identical side 1 bed 1 bath duplex. for $189,000. 1 bed 1 bath rents are between $650-$900. This property is closer to the water.

Currently has a tenant, do not know condition of unit until after purchase agreement.

Any red flags beside that, or is this just simply not that good of a deal?

Let me know!

http://www.realtor.com/realestateandhomes-detail/4...

Michael Hastings · Answer

Hi @Bryant Amundson,

Thanks for the post!  I think to answer this question, there is additional information needed from you before anyone can assess if this is a good deal or not.

For example, whether you are planning on "house hacking" this deal versus buying to try and correct any deferred maintenance and flip it to another investor is a totally different analysis as to if this is a good deal or not.

I would ask you to fill in the "Rental Property Calculator", found under "TOOLS" above on the navigation bar, IF you are thinking of this as a buy-and-hold rental property.

Once you enter all the specifics and estimate the expenses, only then can you answer if this is a good deal.  Once you do this, any red flags will jump off the page.

You can come back here (forums) and ask for some additional help once you have more info. on the deal, there are a lot of people who can help.

Thomas S. · Answer

Rent range of $650- $900 is not a accurate enough estimate. At $650 it is a terrible investment, at $900 it just barley works.

Probably not worth the effort to investigate.