Hello Bigger Pockets community!
I'm brand new to the world of Bigger Pockets and real estate investing and would like some input and advice on a property I'm looking at. It's a duplex and each unit has 2 bedrooms, 1 bath, a garage space, and laundry hookups in each units basement. It's currently rented out at $640 a unit, but I believe I believe rents should be closer to $700-$725 range. They're asking $115,000 for it and I would like to know if that's a good deal or not. My idea is to "house hack" for a couple years and live in one of the units then eventually move out and rent the unit out. I'm planning on using an FHA "first time home owners" loan for the purchase. What are your thoughts?
A good deal to you won't necessarily be the same as a good deal for others. Does it make sense to you?
You don't list the expenses or condition (siding, roof, appliance age, furnace/AC age, dated vs outdated condition of units, etc), neighborhood info, whether tenants pay utilities themselves, or anything else. Without those, I can't tell you if it'd be a good deal for me.
it certainly passes the napkin test @Leo Perera . I purchased a duplex very similar to this one a couple years ago, increased rents overtime and is one of my best cash flowing properties. Key things to check (1) age of HVAC units (2) if on septic, age of tank and last time it was pumped.
Forgive me @Johnny Hastings for the lack of detail. As you can probably see it's my first post. From what I know of the property it was built in 1970. Heating is forced air, Cooling is central air, one unit has remodeled kitchen in 2011, the other unit has remodeled kitchen and furnace in 2014. Home is 2,444 sq ft. One tenant has been there 9 yrs (most likely because the rent is low) and the other has been there for 2 yrs 6mos and both are currently on month-to-month leases. They pay all utilities other than water and garbage. Exterior is brick and I believe aluminum siting. At first glance condition of building seems to be well-maintained although it could use a bit of a spruce up. Not completely outdated but not up-to-date either. Taxes in the area are pretty high. It shows 2016 property taxes on the property were $4,780.
Thank you @Jay Helms for your advice. Looks like septic tank is same as age of building 1970. Not sure when or if it's been pumped.
@Jay Helms Thank you for your advice. Looks like septic tank is same age of building 1970. Not sure when or if it's been pumped. I'll have to look into those details.
@Leo Perera Good find. Septic tanks typically last 30-40 yrs. I suggest calculating replacement expense in your #s. Might not happen for a few years, but you’ll have to replace soon.
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