Think I found a good deal, what do you think?
I've been looking for my first real estate deal think I found it. It is a 1600sqft duplex. 2/1 on each side without a garage. I have a signed contract at $67,500. I would say B- neighborhood.
I am prequalified for FHA funding so it would be 3.5%.
Rent is currently $550 per side, but I will be removing one tenant and the current landlord told the tenants he would be raising rent.
Taxes $884 a year
Insurance $800 per annum
8% vacancy = 1100
1440 maintenance ($60 per side per month)
While I'm in the property (hopefully only a year) CAP rate is 4.89 and when I move out its 9.78 and that is figuring on current rental rate for tenants which is lower then it should be. Plan to raise rent to 575-600 unless keeping the tenant is a problem. The tenant has been there for 3 years and seems like a good tenant that wants to stay.
Inspections are going to be scheduled monday...
How did I do?