Investing In Duplexes
Around me there are tons of duplexes for sale in a strong rental market just half a mile from a major university. All the structures were built between 1890-1930. Would it be wise to invest in these older houses? All the numbers are good, 60-75k asking price for a 2 family collecting between 750-900 per unit. Cashflow is acchievable, but is it wise to buy such old structures which more than likely will have many problems in the future?. Does anyone own old SF or Duplexes? Can you post your experiences with older buildings. A little insight into expenses and matinence costs for maintaining older homes would be appreciated. Thank you very much.
With the right funding source you can obtain 100% financing regardless of the buildings age.
http://www.thecreativeinvestor.com/commercial/modules.php?op=modload&name=Forum&file=viewtopic&topic=29463&forum=20
Anyone know of any books on the subject of buying a MH Park (vs. buying a mobile home)? The book "Deals on Wheels" is no longer in print.[ Edited by kimander on Date 02/14/2006 ]
Thank you Woodsong. Great response.
Six month! expired listing. need a new agent too, unless they advised you to lower it and you refused...
And yea your right It worth what it will sell for. Now pulling out the 100k in a lump some might not be the best idea if you still want to sell it. A equity line would prob be best. Hard to see how you could recoup loan cost within a year. Unless you are doing a 1 year fixed with NO CLOSING (this means your lender makes his money in the back end, and even cover your other cost!) These loans are very possible, I do them all the time, but in the same token remember that the rate Will be higher.
Watch out for prepays, will cost you an extra 8-10k
Thanks for your reply, that was very helpful to know what to check for