Any Thoughts On This 2 Duplex Deal?
I was looking at two duplexes that were recently built. The asking price for each was 175,000. I did some research and found that the 12 other duplexes in the new sub division have sold for between 175,000 and 180,000. I called the builder and he has 3 lots left and stated that he would build me the same duplexes for 165,000 since he would not have to use a real estate agent. I would like to buy them by putting down 20 percent then refinancing after 6 months when I know they will appraise between 180,000 to 190,000 (I know the appraiser) so that I can pull some of my down payment out. I would still keep approx. 25,000 in each property. Below I set out the numbers, but basically with 750 rent (one duplex 30 yr. fix and one duplex 5% arm) my profit would be a little over 950. With Tax savings I estimate I will have about 16,000 in cash flow a year. Does anyone see a problem with this deal? 2nd question: I have been told that if I build I should shoot to have them completed in April or May, because it is easier to find renters in these months. I was told that it is hard to find renters in Dec. Jan. Feb. Any thoughts? Investment Property Duplex 1 Price 165,000.00 Down pmt 25,000.00 30 year note 140,000 Int. Rate 5.23 Payment 771.35 Taxes 200 Insurance 100 1071.35 Rent 1500 Profit 428.65 Duplex 2 Price 165,000.00 Down pmt 25,000.00 30 year note 140000 Int. Rate 4.78 Payment 686.26 Taxes 200 Insurance 100 986.26 Rent 1500 Profit 513.74 942.39
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I'm wondering are these rates all on 5 year arms and how are you getting such good rates. I have my duplex N.O.O on A 30 YR FIXED AT 6.375
the only problem i see with your deal, is the low rates
wish i could get them haha...but it looks good to me
the numbers add up....does it give you the feeling of too good to be true? i dont undersand
looks good to me just trust yourself...
the deal looks good
~Andrew
just an FYI...rent - PITI doesn't not equal profit...
profit is an accounting term referencing the accrual method and such things as depreciation should be taken out to figure profit...but...
Also, rent - PITI doesn't equal Net Operating Income either
you have to account for vacancies/collection loss, repairs/maintenance, reserves, utilities you might be paying(i'm guessing they must all be on seperate meters?)
Its really just cash flow after PITI, I don't have a better title than that....
Are taxes really that cheap where you live?