All Forum Posts by: Wesley Rugg

@Simon Cohn-Gruenwald we had the worst experience on VRBO from a renter side and I will never book through them again.

@Wesley Rugg maybe even 130k with the four bedrooms

@Sean McKee I am guessing somewhere around the neighborhood of 120k just based on location.

@Matt Dingus I would be interested in joining the group. Could you please send the information.

My wife and I just purchased our first rental duplex this summer. 2bed/1bath and a 1bed/1bath. We paid $119k in our area and we are getting $1500 a month for it. With a rehab of $1500 out of the gate.

This isn’t a terrible deal but we learned a lot and could of done better but there is a longer term play. My grandfather lives next door and he has a rental. We hope obtain that property along with this one. It would give us four units across the street from one another. Cash on cash return of about 9%.

My question, we found another duplex listed for $95k. Each side is a four bed room one bath. One side is rented for $850 and the other is $700.

The $850 has recently been remodeled new kitchen, windows, drywall and paint. The other side has been there for 10 years. Supposedly has paid rent on time every month. This side needs a complete gut job. It is the most disgusting place I have ever been in. The first thing I did when I got home was shower.

In my head, I am thinking I am looking at 30k in a rehab budget. I offered 45k for the property. They laugh/rejected the offer and countered of 95k. The cash on cash return looks good of 17% and greater, depending on what I get the property for. There are two areas of concern. Does the bad apartment really pay on time and is that an eviction waiting to happen. Secondly the gut job need on that same side.

The good news after the remodel you could raise the rent on the second side to 850.

What would you do. Is it worth the risk? It could be profitable.