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Real Estate Deal Analysis & Advice

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Kevin Jung
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Is this a good deal? Good cashflow but bad neiborhood?

Kevin Jung
Posted Jul 31 2021, 12:15

I'm looking at a duplex with crazy cash flow but it's in a really bad neighborhood. Bunch of thieves, dogs, and drug attics running around. Pretty far from any restaurants, markets, and such. But it has 2 tenants in place already, who are paying $900 per unit. Have not had an inspection yet, but expecting to see few problems like needing a new a/c and it's also in a flood zone (with stilt height in place). I remember not to mix personal feelings towards buying an investment property, but I just cannot help myself.

So should I put an offer on a property with crazy cash flow that's in a bad neighborhood and possible problems with the property? I would use property manager since I live in a different state.

Listed $139,500. 20% Downpayment ($27,900). 

PITM (Mortgage, Insurance, flood insurance, taxes)= $838

Rent = $1800 (900 per unit) {each tenant has contract until May 2022)

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