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Updated 2 days ago on . Most recent reply
Would you do it
Lookingat my first deal. I used the bigger pocket deal analyzer but I wanted to see what people thought here that are far more experienced and willing to help a young rook such as myself.
Would you buy this?
Duplex - 2bd, 2th on each side.
Turnkey - no work needed. Both units currently rented.
Price: 175K
25% down = $43750
Combined rents = $1,400 monthly
Tenants pay all untilities
BP calculated says it cash flows about 350monthly
Wold you do it for your first property?
Most Popular Reply
If you are allocating for sustained expenses, you should allocate for maintenance and cap ex even if it is a new build. As soon as an item is placed into service, the lifespan of the item has started.
For example if a water heater replacement is $1200 in your market and lifespan is expected to be 10 years, the water heater has maintenance/cap ex o $10/month. 2 water Heaters means $20/month. When you do this for each item, your sustained expenses will result in this being cash negative.
Purchase price if $175k depicts an appreciation rate lower than inflation.
I do not see a profit that justifies the risk and effort of residential RE. where do you see the return coming from?
good luck