Is this still a good deal?

[Elizabeth Jimenez]

Looking for feedback on an Indianapolis duplex deal.

The property was listed at $155,000. We offered 150 came and they offer got accepted. The inspection found that the roof needs replacement, electrical updates are needed, and some support posts should be reinforced.

After negotiations, the seller agreed to reduce the price to $145,000.

I'm estimating about $15,000 in repairs, primarily for a new roof and electrical upgrades, bringing my total investment to around $160,000 all-in. Once completed, the property will have a brand-new roof and updated electrical, which should add value and reduce major maintenance concerns for years to come.

Expected rent is approximately $850 per unit ($1,700/month total).

Would you move forward with this deal at these numbers? Does spending $160,000 all-in for a property with a new roof and updated electrical still make sense from an investment standpoint?

[Arman Ahmed]

Quote from @Elizabeth Jimenez:

Looking for feedback on an Indianapolis duplex deal.

The property was listed at $155,000. We offered 150 came and they offer got accepted. The inspection found that the roof needs replacement, electrical updates are needed, and some support posts should be reinforced.

After negotiations, the seller agreed to reduce the price to $145,000.

I'm estimating about $15,000 in repairs, primarily for a new roof and electrical upgrades, bringing my total investment to around $160,000 all-in. Once completed, the property will have a brand-new roof and updated electrical, which should add value and reduce major maintenance concerns for years to come.

Expected rent is approximately $850 per unit ($1,700/month total).

Would you move forward with this deal at these numbers? Does spending $160,000 all-in for a property with a new roof and updated electrical still make sense from an investment standpoint?

At $160k all-in for $1,700/month gross rent, I’d look at it less as a “good deal” and more as “does this still cash flow after taxes, insurance, vacancy, maintenance, and management?” The roof and electrical being updated is a big plus because those are expensive headaches you won’t have to deal with soon, but the support post repair makes me want a closer look at the structure before moving forward. If the numbers still work with conservative expenses and the neighborhood supports strong tenant demand, it could be a solid hold. If it only works on best-case assumptions, I’d pass and keep looking.