Okay, Howzabout This One...
Hey guys check this one out.
Duplex
$500 both sides plus utilities
Garage on property
$150 a month for storage
Total: $1,150 monthly
==================
List Price
$42,500
Taxes
$2278
90% LTV
$4,250 DP
Amount Financed
$38,250 at 8.5% for 30yrs
====================
PITI = $533
====================
$1,150
- $533
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$617 Difference... not bad for a $5k investment. Problem is it's in kind of a dumpass part of the city. A couple of elderly women rent out one portion and their daughter rents the other. The garage is rented by a motorcycle shop needing storage. I have yet to see the place personally as I prefer to do as much crap over the phone as I can before heading out and wasting time. What do you guys think??
- Joe
The numbers look good.
What does it need in the way of repairs - go look at it.
When the old lady and family move will you be able to re-rent it at the same rent. Or will the bad part of town stop you from finding acceptable tenants?
That sounds like a great deal to me... I would go ahead and grab that deal... However - I would definitely go take a look at it and talk to the tenants about what kind of repairs they think it needs...
Good Luck!
[addsig]
Joe-
Numbers look good.
1) Verify how solid the rental numbers are. Make SURE that you're not being fed a line of crap. Have the seller produce the leases - remember YOU are one the hook for whatever the lease says...
2) Look it over carefully and check for deferred maintenance. That's a big potential issue.
Let us know what you find!
Jeff