How does this deal in midtown Oklahoma City look?
Hey guys,
I'm not a brand new investor, but this is the first home that we haven't lived in before we rented it out. That makes the analysis of this deal more important. This is what we are looking at. We have found a duplex in Oklahoma City in a neighborhood that is not deemed historical, but has the charm of one. It is 1,810 square feet and they are asking $120,000. One side is rented for $575 through October of 2018, and the other for $635 through February 2019. The property does need some work. It needs central heat and air added, a few trees removed that are encroaching, some brick work and there is a double car outbuilding that is in disrepair. The kitchens and baths are dated too, but livable. With all of that said the neighborhood is great and fixed up it be worth $150,000 and bring rents of $1400-$1600 a month. Is there enough room in this deal if we offer $100,000?
One thing that I am not sure about is how to handle the tenants. We would probably fix one side at a time. The one with the lower rent has been a long term tenant and doesn't require any upgrades.
Oh and as a side note, we have 2 properties in Edmond. One we own outright and the other have a considerable amount of equity in. We will pull equity out to do the renovation on this new purchase.
Thank to all of you Okies who know the midtown/downtown area for your eyes on this deal!
Amanda