Please offer some criticism. Was this a missed opportunity?
Check out this home at Realtor.com
$730,800 ($750k was listing price, I would have paid $700k)
6 beds · 6 baths
50 S Union Ave, Cranford
https://b1iw.app.link/URhZUtpucZ
The original listing is gone now. But I am wondering if I let a good opportunity pass.
Here are some basic details:
1. Long term tenants 12 years and 7 years. Both apartments were maintained very very nice.
2. ALL utilities were separate (water, electric, gas)
3. Each apartment was exactly the same but 100% separate. Even the garage had a wall between them.
4. There are NOT a lot of duplex that come to the market in this area (most are under and over layouts not left and right)
5. The rents were under value. From comps 3k per month was the norm. I would have raised the rents to 2500 due to the fact that I really liked the way the tenants maintained the apartments.
6. Landscape was a bit much and due to corner lot with sidewalk a lot of snow removal (which currently is a landlord responsibility.
7. Most if not all major expenses looked good (roof, furnace, HW heater, appliances etc.
8. The property was close to my home so I would not need a property manager but would utilize a handyman to correct and maintain normal issues.
9. Would need a loan, perhaps do a 1031 exchange on a previous home or come up with 200k down payment plus closing costs.
10. Misc Expenses: landscape/snow removal $1500 per year, garbage $600, taxes $17,900. I believe that was it in regards to LL responsibilities.
What do you guys/gals think? At 700k and 60k income was/is the CAP (5.7%) too low? Any suggestions on financing? I currently only utilize traditional 15 or 30 year terms.
Thanks in advance!
Gaspare