Deal or no deal? Desperately need another set of eyes {calc}
*Link to calculator report is below
Hey all,
I am having trouble deciding if this is a worthwhile deal. This is my first multifamily and second overall deal.
The property is in a "C" neighborhood in ROC, NY. Its an early 1900's duplex that currently has tenants in place, one side is section 8. This neighborhood typically has government assistance w/ rent. I am using more conservative #s for capex to account for the age. It needs a new certificate of occupancy, which requires some repairs, estimated around $3500-5000. Also will need a new furnace, HWH, and some other smaller repairs soon so I put the repair cost at $8000 to account for all this.
The price we are in contract for is right at market value or possibly 2-3% above. Hard to tell because not a lot of MF comps & theyre in high demand for this area.
This is not an area this will appreciate in value any time soon.
Main questions on my mind are:
Though the coc return is ~9% and its almost turnkey...Since I am having to put that type of money into the house, but not really get any equity for it, should I save my $ for something better?
With those type of tenants, and the age of the property...is it going to end up being an ongoing headache that will nickel and dime away the profits?
Would you do it?
Any input is greatly appreciated!
*This link comes directly from our calculators, based on information input by the member who posted.