Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
6y
This is an interesting property, @James Johantgen. A few questions off the bat:
Is this on town water/sewer or well/septic?
What will it cost to maintain the 18 acres? That's a lot of land.
How does that amount of land impact your insurance? Surely more liability.
Regarding your analysis:
Closing costs look low. This is local, though. Make sure you confirm.
Have you inspected the property? How confident are you in that $25k renovation budget.
Do you plan to owner occupy? Analysis doesn't reflect that. I don't think you'll get a rate that low on an investment property.
CapEx and repairs are way too low. I underwrite to 15% combined. You may want to even push that to 20% since this is a low-value property, there may be additional costs due to the 18 acres, and with separate buildings, you won't see as many efficiencies of scale.
Management will likely be 10-12%.
If the water/sewer is town, do the tenants pay that individually? Even in the duplex?
Is there any opportunity to put up additional units? If the rental market is that strong, you could try to throw up some quads (or even bigger). What would it cost per-door to do something like that?