Should I Buy A Duplex In Residential Area
The seller has a house that was bulit in 1933 and it is a duplex. each unit has 2000 sq ft and it is a 2 story. She says income is 1600 per month inlcuding a garage apartment of 720 sq ft. She is asking 145,000. This is a old neighberhood with lots of 2 story old homes some in great condition looking from the outside and some that could use an immediate face lift. She doesn't have an apprasial. I would like to make an offer. The inside doesn't need any work it is well kept. I didn't see the garage apartment so I don't know that it looks like. Any help would be greatly appreciated.
What do you need help with? Figuring out what to offer? How much do comps in the area go for? How much cash income will it generate total vs. total annual expenses (taxes, mtg payment, maintenance, etc...)?
Start by doing a search on www.realtor.com
Realtor.com search for multifamilies on Longview, TX
It's not a great deal judging by the cashflow off the bat, but that is in my area. Get some comps and go from there. Seems awful thin if you put 29000.00 down to make $3,000.00 per year net.... if you are lucky.
Good Luck,
Shawn(OH)
Thanks for all the great advice!!!!
Is this area appreciating well? A lot of times I've noticed the ones that cash flow well tend to be in worse areas, less appreciation. I'm buying one now for $120k but i don't see a whole lot of foreseeable appreciation. Not enough to make a profit on it, though.
Quote:
On 2004-09-04 11:42, joymarie wrote:
Thanks for all the great advice!!!!
Another idea for you:
In our area, lots of 2 & 3 plexes are being converted into SFRs, because of huge demand for SFRs and huge escalation in their sales prices last few years.
I've got an SFR that I was thinking of converting to duplex, but after seeing what's happening to our SFR market, and its escalation, I've about changed my mind into keeping it as SFR.
So, with that in mind, check the comps on SFRs that size, in that area, and figure what it'd be worth as rehabbed SFR.
[addsig]