All Forum Posts by: Antuan C.

@Kerlous Tadres

Thank you for your input Kerlous.

The property needs minor rehab in one of the units <10k. Roof and water heaters are brand new.

Appraisal came back today 80k above asking price.

The property is 15years old. I think I’m going to take your advise and move forward

@David Fern thanks for your input, I think I’m going to do that. Appraisal just came back today 80k more than asking price.

Thanks everyone for your input.

I wanted to provide an update:

Appraisal from the bank came in 80k above asking price.

Inspection came back fine, the only major issue is exhaust fans not connected to the roof, left open in the attic

Roof is brand new 2 years old.

One unit is being rented the other one is not. I plan to update it, cost me less than 10k.

This is Pacific NW, that has strong appreciation. I bought a duplex 5 years ago for 360k and it’s now valued at $550k conservatively.

I think I’m going to move forward with the offer even though it’s not going to cashflow for a while.

@Mike Day

Thank you Mike, I agree with you cashflow is king. I don’t like to play the appreciation game.

However, in this environment is so hard to find a cash flowing property with 5% down. So I have been thinking on using the cashflow from the other properties to cover the negative cashflow until cashflow improve or until I can refi.

The property doesn’t require much work <8k. Roof and water heaters are brand new, property is about 15years old from the same owner.

Most duplexes in the area are running over 100k more

@Rick Albert

Thank you Rick, very insightful. I agree with you.

This would be my third duplex, the first one cashflows really well and the second just a few hundred bucks. I have noticed as time passes cashflow improves.

I also like to renovate immediately what’s is necessary so that it doesn’t give me headaches down the line.

@Dan H.

Thank you Dan, very insightful.

If I were to put 20% down, it would cashflow nicely, but it doesn’t with 5%.

I could put 25% down (which is what the lender requires as an investment property), but it’s a lot of money. I rather minimize my down payment and leave the rest in VTI until I can buy another one.

What do you think?

@Kevin Lee

It doesn’t. I have the inspection coming up this week, but roof is 2 years old. One unit is rented at market price and the other is vacant. It’s livable, but I plan to change to floor to vinyl. That plus a few broken blinds, a light painting coat and maybe some bathtub resurface. I estimate less than 8k.

Thanks for your input 🙏

@Rick Albert

I’m only factoring mortgage payment, insurance and taxes. I’m likely losing more as you said.

I’m not counting for tax benefits. That can definitely help me offset my w2.

Appreciation is strong. For example, I bought a duplex back in 2019 right before covid that has appreciated around $170,000 conservatively.

Thank you for your input 🙏

@Andrew Postell

Thank you so much for your insights.

In my case, I will only be spending a brief time in the other unit “I should be occupying”, I have to come a few times a year (its in a different state where I currently live). I have relatives that will stay there, and pay fair market rent.

Only counting mortgage payments, insurance and property taxes, I’ll be negative $300/month, probably more due to repairs and vacancy. However I’m only putting 5% down. If I were to put 20%, it would cashflow nicely, but in this environment with such high interest rate is hard to find a cash flowing multiplex with only 5%.

Roof is two years old, one unit is occupied already and the other unit ready to move in. I’ll just probably change the floor to vinyl and change a few blinds and do a bathtub resurface. That will cost me less than 8k.

What do you think?

@Mike Day

100% agree with you, but given that I’m only putting 5% down, I think I can bite it for now until I can refinance. If I were to put 20% down it will cashflow fine.