[Calc Review] Help me analyze this Duplex in Everett WA

11 Replies

@Amine N.  congrats on working your deal. Obviously it is not throwing off cash at this point. Are rents at market? Is there an opportunity to do some rehab and getting higher rent? I know Everett is a prime area so CF is tough to get. In a hot market like we have all over this area the only hope of a decent return is finding a distressed property and an eager seller-tall order I know. All the best!

@Bjorn Ahlblad thanks for your response! I might have been a bit more conservative on the rent. Some units in the neighborhood seem to rent for 1600-1700 and more so that would help with the cash-flow. However, I’m a litttle uncertain about the estimation of maintenance and capEx. Currently I have them at 10% each (or $600 total). Is that too little or too much? It’s hard for me to tell. The property was built in 1905 but has been renovated recently and doesn’t look like it needs much rehab.

Thanks again!

I was going to say that $1,500 for a duplex with only 2 bedrooms was high for Everett. 

I just moved from Everett and rented a 3 bedroom 2 bath house in downtown - somewhat updated for $1,650. 

Originally posted by @Amine N. :

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

FYI - this is not a legal duplex. That aside, I own a few dozen units within a mile radius of this property (most built pre-1912)and here is what I can tell you about your analysis:

- Rents are decent 

- Vacancy is way too high-at those rents. 5% is adequate 

- Garbage could be $30/mo

- Water and sewer $120/mo

- Insurance could be as low as $50/mo depending on coverage

- We average 7% per year on capex and repairs (14% total) on these older buildings 

It is going to be hard to cash flow a duplex in Everett in this market especially using tips from BiggerPockets. Make experience has shown me in order to make it work you have to self manage and get aggressive with expenses like cutting insurance, landscaping and repairs.

I would recommend going to a fourplex in order to get some decent cashflow 

 

@Grant Fosheim and @Amine N.

I have to echo what Grant is saying. I have a few places in N Everett. Cut your expenses and ride it out. Looks like a nice place but may not be moving because it’s not an actual duplex.

I have a very close friend who has been forced by the city to convert 5 places back to SFR from the city of Everett. I don't even go down that road now.

Rents in Everett have gone through the roof over the last decade. I remember begging renters for 1275 for a 3/1.5 in the northwest neighborhood. Now I am getting 2175. Kinda nuts.

@Grant Fosheim and @Kai Van Leuven

That is such good information! I really appreciate you guys taking the time to give me some feedback!

I have been wondering why this property has been on the market for so long. How do you go about finding out if it's legal or not? Pull the permits records from the city?

Thanks again!



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