All Forum Posts by: Haley Justice-Bonsell

Hello! My partner and I have had our eye on a property for a while but never pulled the trigger because we were hoping the price of the property would decrease. Good thing we waited (and lucky that no one else has bought it yet) because the seller decreased the price by 10K. Its a duplex with current tenants whose leases won't be up until April 2022. I've used the Bigger Pockets calculator do look at the numbers but I think I still need some encouragement to actually go for it. Here's what I've got: 

Purchase price: 85K, down payment: 16K (don't want to buy the property outright at this time), income: 1000, total expenses: $680, cash flow: $320, CoC ROI: 20.12%, NOI: 8,148

The house doesn't need any major improvements at the moment, and I was considering once the tenants leases are up in 2022 then I might consider making some improvements. I think the cashflow looks good, and there are already tenants who have lived in the apartments for a while and would most likely want to stay, so we would immediately be making money. 

Are there other things I need to consider?

Thanks!!

@Kevin Sobilo I have not heard of "keys for cash" before, but it sounds like an interesting idea. Thank you for bringing that up to me!

Hi all! 

I'm trying to analyze the numbers on a duplex. Both units are currently rented until 2022, so I don't feel like I can do the typical BRRRR process (can't really renovate when you have active tenants). I have a private lender willing to give me the cost of the down payment.

From what I know of the property, and using the bigger pockets calculators, I've calculated my overall cash flow to be approx $200/month (before any work has been done on the house).

I have the idea to renovate one or both of the units when their leases are up in 2022. I'm thinking I could borrow from a hard money lender for the renovations, then complete the rent and refi steps. 

Does this make sense to do in order to pay back the hard money lender and my private lender? Should I maybe not even bother with the renovation if it will still give me current cash flow? I was trying to think of ways of how I could pay back my private lender for the down payment without it taking years to pay him back. 

Thanks!

Thanks for the info Chris! I do own a home already, so possible 25% down sounds like how I might have to do this. 

Location: Ohio

I recently found a duplex for sale that has been fixed up by the seller (so I won't need to live in it and fix up the other apartment). I would be interested in purchasing and renting out the two units. As far as purchasing the property, is there a specific type of mortgage for people purchasing a home they aren't going to be living in? Is there someone who has been through this situation before who can explain how it works? Thanks!