All Forum Posts by: Account Closed

it is little thin on cash flow but doable.

you will hear a lot people  here say NO because it doesn't fit 2% rule or  50% you will be Neg cash flow $489. 

But if all you can find in your market is 1% then you have to do it. Good Luck. 

Your Expense is so high for Duplex. Your Rent ratio is 3030/225000*100 = 1.35

If you use 50% rule on expense, you cap rate is 6.8. 

It is very good number in my market and I would buy it just like whoever bough it.

Thanks everyone for join in and give me some of your opinions. After read all the comments, I see there are a lot people out there not able to find 2% deal or in same boat with me. Base on the condition of the property, I know I will not have to fix anything to rent out plus I will manage myself. So For the realistic cash flow, not counting any reserve vacancy, properly management, capex the money will be in my pocket will be $920 a month x 12= $11040 / $45000 down payment and all closing cost = 24% COC return. Not bad at all. let me know if my calculation on COC Return is Correct. Marc Jolicoeur . Can you share your banker that you work with before that you think that good? I wish I have more money to do 25% but 20% is what I can afford right now. and You right about tax. it does go up every year, and one of my property tax jump 44% from 2014 to 2015. let connect some time. I go to MNREIA one in a while too.

Dan B. It is in the metro twin cities. My Piti calculation was for 20% down . And you are right, it is hard to get 2% or 50% deal here in metro. All utility mean all water included . The rent is little low and could go up to $1200 or $1250 but I may face higher vacancy if I go to $1250. My desire cap rate couple year was 10% up but with this market, I could wait forever to find the deal like that.

Jesse T. The rent could increase to maximum $1200 per unit. It does not fit 50% rule at all. $2400 x 12 = 28800 /2 = 14400 / 205k x 100 = 7.02 cap rate. If pay all cash.

Sam McPeek The duplex is rent ready. Fairly good shape in a B area. Would that make any difference Arlan Potter where do you find all that deal ? What location are they in and do you have to put money to repair ? It will not be good if you buy cheap then put in a lot money to repair to make it rent ready.

The duplex is rent ready. Fairly good shape in a B area. Would that make any difference.

Hello BP. Would you buy this Duplex? Duplex for $205k with rent is $1100 each unit. Total deb service is $1280 for PITI and tenant pay their own utility. Let me know what your opinion ? Your analysis point? Green to buy or not and Why ?

@David Dorau 

Welcome to BP. It is Great Place to learn. 

It is not really terrible bad deal.  I think you should think about it. For Duplex, you don't really have to have property management, Lawn care can be tenant job.  

for $150k , if you can refinance with convention loan in couple year, your payment with insurance and tax will be around $1100 max so you will have $750 to play around. 

If it was me, I would really consider it. 

Good luck.