Updated over 5 years ago on . Most recent reply
[Calc Review] Help me analyze this deal
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This will be my first multi-family purchase and would like some input. It is a brick duplex built back in 1890. The roof and furnace are both brand new and the listing price is $89,900.00. It is a 2 bedroom on bottom floor and 1 bedroom on top (with ability to make into 2 bedroom by finishing attic). It is 2200 sq ft.
A few issues
- The home still has some knob and tube wiring
- Bathrooms need major update
- Kitchens could use some updating but for most part ok.
- A lot of plaster/drywall issues
- Currently using Window A/C units - not sure worth upgrading
- Windows need replacing and needs more insulation in areas.
Talking to my property managers the average 2 bedroom runs between $600-$750 and 1 bedroom from $575-$650. Most of the ones on lower end are not updated at all though. I do think I have a conservative estimate of $30,000.00 in repairs.
Finally, the electric is not on separate meters so we will be adding on an estimated electric and water/sewage amount to their rent. This makes it a bigger priority to insulate the home.
Currently, there are no renters either as it is just being used by the owner's son.
Look forward to everyone's opinion and feedback!