Homeowner · Dalton, GA · Member since 2010 · 108 posts · 13 votes
i have found and placed bid on Duplex here local still waiting on financing tho from HML or PML
Please tell me if this fits the 50/ 2% rule if does show me how if don't tell me what does so i can get this pictured in my head to make solid investment choices as i get started thanks for all critiques
AS IS Value right now is 30 K per HUD Appraisal. Now I plan on getting for less than 20-25K. FMV from tax assessor is 57K Tax Assess appraisal is 67K now it needs 5-10k work but area rents are 450 for 1 BR and up to 650 for Two BR. I believe i can purchase and Rehab 35- 40K with ARV 80K and plans are to rent for each side 125 wk( A ) and 100 wk( B )as (A) has Washer and Dryer Hookup and (B) doesn't
Realtor · Gallatin, TN · Member since 2009 · 292 posts · 164 votes
16y
I would NOT go with weekly rentals ... Just my opinion. Tenants would treat the property WAY worse if they are just there for a short amount of time, plus the turnover would be horrible.
not sure how the 50/2% rules flows in to weekly rentals, as expenses might run higher (60-65% -- just a guess with the added vacancy and turnover)
I would do nothing less than 6 month leases on your duplex, and assuming you are done building out/rehabbing at $40k, than $1,000 back in rents per month would fall within the 50/2% rule ASSUMING you don't get bent over backwards on a HML.
Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
16y
i wouldn't go by tax values/tax assessments, etc....they're way off in most areas...if the hud appraised it at 30, that's prob what it's worth...btw, it's not hard to add a washer/dryer hook up during rehab....i'd take 1,000/month rent to be all in for 40,000. if you're going hard money, be prepared to refi though.
Homeowner · Dalton, GA · Member since 2010 · 108 posts · 13 votes
16y
Originally posted by Bryan Alenky:
i wouldn't go by tax values/tax assessments, etc....they're way off in most areas...if the hud appraised it at 30, that's prob what it's worth...btw, it's not hard to add a washer/dryer hook up during rehab....i'd take 1,000/month rent to be all in for 40,000. if you're going hard money, be prepared to refi though.
Thanks Steve and Bryan i was looking at the Washer dryer hook up and on the side that currently has it has been mis managed and allowed for ROT but i understand be easy to add i more than likely will just i was advised not to by the broker showing but i told him that i myself would be more interested in renting with hook ups just so you don't lug laundry down the hill for the Laundry-mat