$34k Duplex with $400/month positive cash-flow

[Faisal Sami]

Hey everyone
Here is a deal I closed on in January. I bought a duplex in Cleveland for $27k and put in $7k in fix up. I get $950 in total rent, $475 each side. I have a seller financed note for $19k and my monthly payment is $414/month for 4 years with a balloon of $4k and the property is free and clear. I pay about $150 for insurance,taxes and property management. So i get $350/month in positive cash-flow. Been working out great. My property manager goes and collects the rent each month at the tenants front door and then deposits right into my bank account the same day. Been working great .

[Paul B.]

50% rule or not, when you're getting $950 a month in rents against a $34K investment, you should be printing money.

Maybe the cash flow ends up being lower than higher for the next four years, but if you just set aside about $80 a month, you'll have that balloon paid off when it's due, and you'll own that thing free and clear.

Looks like a sweet deal to me.

I assume from your email address that you like duplexes. I've always felt the same way, but now I'm wondering, if I am paying the same per door for single-family homes, isn't that the way to go?

I think in the next 5-7 years there is more upside to owning small, low-cost SFHs compared to pure income properties.

Are you focused on duplexes, and if so, why?