[Calc Review] Help me analyze this deal...too good to be true?

[Parker Babbe]

Hello All.

Looking to see if this is too good to be true. This is a side-by-side duplex, each 3BR 1Bath, with one side vacant and the other about to be. I'm thinking this would be a good opportunity to give it a facelift, get a better tenant in and fetch a better rental rate. Asking price is 110k, and will be making offer of 90k and have included 10k of rehab costs into the total purchase price of 100k in the calc. I'm doing this because I would be using a HML for the purchase price AND the rehab. The plan would be to refinance to a 30yr fixed after I get new tenants in, to get some cash out of the transaction. Current owner lives out of state, and the property was assessed last year for 142k. Any major structural issues aside, this seems like a solid deal.

Thanks in advance!

View report

*This link comes directly from our calculators, based on information input by the member who posted.

[Parker Babbe]

@Chris Y. @Jon Crosby I saw the property last week. It is a true duplex, but one side needs to be completely re-done (new sheet rock, appliances, flooring, etc.) as the previous tenant destroyed it. It has already been stripped down, so it likely has sat for so long because it is a substantial project. It is not in a flood zone, as it is up on a hill, although there was some moisture in the basement. The ARV on this property is the big unknown (as it usually is) so I'm going to try to pull comps, and potentially see the property again with a contractor to gauge what the rehab might cost...