What can I do to find ways to make the numbers work?

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    7y

    @Aaron Signer  Based on the amount of the down payment, I'm guessing you are going to be living in half of the duplex.  Is the $2K in rent for the other half or both?  If it is for the other half only, it is a pretty good deal.  You can't expect it to cash flow if you are living in one of the two units.  On the other hand, if the $2K includes what you'd expect to get for rent after you move out, then the numbers aren't as good.  Are property taxes really $6500 per year?

    How much are you currently paying on rent? 

  • Member since 2019 · 67 posts · 17 votes
    7y

    That is the current estimate for this tax year. Last year was $6100. 

    Yeah, I was going to be living in one half of it and the $2K was with both sides rented. The current tenants are month to month paying $850 and $900 respectively. I am currently paying $1650 for a 3 bedroom/2 bath house a few blacks away.

  • Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
    7y

    @Aaron Signer,

    • Bump up your repairs and CapEx. 15% combined is usually good.
    • Any shared utilities that you'll be responsible for? Water/sewer?
    • Insurance looks very low. Talk with a local insurance agent.
    • Why do you think you'll be able to buy this so far below FMV? You're only putting in $10k of work.
    • You can probably do a lot better on your mortgage interest rate.

    Finally, this is cash flow negative as an investment property in your analysis, why are you pursuing it?

    Oh, don't forget to "@" people in the forums so that they know you've responded.

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