Updated over 14 years ago on . Most recent reply
Converted single family to duplex deal
I found a duplex on CL near a bunch of my other properties. The seller has dropped his price to $106K and says it does not need any repairs. The duplex is a converted SFH so the utilities are not split (landlord pays). The rents for each unit are $800 per month for a total of $19,200. The seller says taxes, insurance and utilities run about $6,800 per year consistently.
The seller also said he would do a contract for deed (seller financing) with a decent downpayment.
So I was thinking of seeing if I could wholesale it to a newer investor. They could put $10K or so down and clear $6-$700 per month cash flow. Then they could refinance it in a couple of years when the CD comes due and not owe much at all if they saved the net rental profits.
I would be interested in what everyone thought? I will verify everything and I have a few prospects of people who want to get into this.