[Calc Review] Help me analyze this deal!
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Good morning!
I'm looking at a potential deal and I'll be doing a walkthrough of the duplex this afternoon, but I have a few reservations that hopefully some seasoned veterans can advise on. This is my first deal by the way.
Current concerns: Duplex is on sewer and septic, property is right at an hour from my personal residence, I plan to self-manage for now to learn.
The current leases are 532 and 596 (non-section 8) through March and April respectively and are below FMR which I'm seeing in the 800 range with a few cosmetic upgrades. The area is good; 4 miles from a large mall, 3 miles from the local growing community college, and about 8 miles from downtown with is undergoing revitalization and is definitely growing.
Just looking at the report, my numbers do not work right now at that purchase price, but getting the rents up even into the 700~750 range would make this work.
What do you all think? Endure the lower rent until the leases expire and raise them? Pass? Let me know any other info I need to provide.
Thanks!