Duplex numbers - is this a good deal?

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I have been looking for a multi family property that is primarily remodeled to find a deal that works for a buy and hold scenario.  Can you please review my numbers on this and let me know your thoughts?  I am concerned about the cash on cash % as I have heard that should be around 10%, but the return each month seems good.  I would like to hold for at least 10 years.  Thanks in advance for reviewing!

Michelle Dunn

Robert L. · Answer

I generally shoot for $100 cashflow per month PER DOOR.  It's an ok deal and I would only bite if there is much more value plays such as potential for much higher rents after the rehab or things that can be done to the property that can increase the value or income.

Lesley Resnick · Answer

The real story here is the depreciation and mortgage interest.  You will make more on tax savings than the cash flow.

The deal is ok.  Have your verfied the numbers, water insurance, etc?

Washington has become a tough place to find solid deals.

Brian Mcmenamin · Answer

@Michelle Dunn I think it depends on how bad you want this place. Its an ok deal, but not great. I've rushed into some deals with numbers a little better than this and they always end up being a headache. I'd recommend waiting or drop purchase price to make the numbers work. Also, I have never done a rehab for $5K unless they are move in ready. You will probably spend more than that number to get this place performing. Good Luck