What’s your opinion on this duplex?

3 Replies

I don’t think I will make an offer on this property unless I found someone to partner with but for the sake of learning, let me know what you would do. The property is 1457 Esterbrook ave in Rahway NJ. It’s a duplex attached to another duplex so their may be potential to buy the other side in the future. It’s in downtown Rahway, not too great a neighborhood but a 3 minute walk to the train station. Without seeing the condition of the inside, I ran the numbers guessing 20k in repairs, 8k of closing costs (to be wrapped into loan). Assumed 5% vacancy and 10% for maintenance/Capex. Putting down 5% for the down payment the property looks like it would cash flow if I borrowed 145000 or less. That is assuming the whole property rents for 2100.

@Josh Thompson

Seems like you're making allot of "Assumptions", why don't you have or can you get the "Actuals" of the property currently? Is it vacant?

Do you NEED to put anything down? What is the asking price? is this a listed property? Need many questions answered before making any decisions

Paul,

I’m making a lot of assumptions because I reached out to the listing agent but never heard back. The property is occupied (would likely try to have it delivered vacant) and I would put down 5% which is the most I could afford and pretty much the lowest traditional mortgage would allow.

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