First time investor made an offer and was accepted
I currently made an offer on a legal “duplex” that is 3/2, 3/2. (All year leases). One unit is rented at $1,200. The second unit is split into two: 2/1 and 1/1. The 2/1 brings $1,200 and the 1/1 brings $600 (all monthly). The monthly total gross income is $3,000.
The property is from 1970 and needs a little bit of work on the roof. The offer, which has been accepted, is $335,000. It’s in Miami FL, which is why the price is so high. (A duplex in the same area in great condition would cost $500,000)
I have two questions:
1. does this sound like a good investment?
2. Should I do an FHA? Or seek capital from friends and family to avoid the PMI and get a conventional loan for 20% down?
Thank you for the continued support of the BP family
Most Popular Reply
Tell us the cash flow with the debt service and without, and then what the cash flow would be with the PMI.
BTW, you called this a legal duplex, but did not call it a legal non-conforming triplex. Do you understand the risk? Have you talked to an attorney, or were you hoping to save money and not hire one?