Duplex In Michigan
I am very new to property investing and wanted some input on a property I found. What do you all think of this duplex built in 1910 two 1400 s.f. unites rent for $800.00 each per month. taxes are $3100.00 a year, SEV $110,000 asking price $260,000 What would you do???
Thanks, in advance MIke
Hi Mike,
The only thing about this deal that bothers me would be the lack of a positive cashflow. What is SEV of 110,000? the asking price in relation to the income will provide you with a neg cashflow. @ 6% financing on 200k your P&I pmt is 1768.00, and that doesn't take into consideration the taxes and insurance, repairs, etc. You would have to raise the rents to 1200 per unit to create a positive cashflow at their price, or put more money down. I don't see that the #'s will work.
Good luck and make $$$
Tom