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Updated almost 3 years ago,

User Stats

4
Posts
1
Votes
Dolina Maharjan
  • New to Real Estate
  • Kansas City, MO
1
Votes |
4
Posts

Newbie first deal can't decide

Dolina Maharjan
  • New to Real Estate
  • Kansas City, MO
Posted

Hi Everyone

I am really struggling to decide if this deal is a good deal for me. I have a duplex offer accepted in KC, MO in one of the up and coming neighborhood called Waldo. I am planning on living on one side for a year and renting the other side. One side is rehabbed but the rehab work looks really unprofessional and cheaply done, plumbing done in most cheapest way like using flex trap , other side needs lot of work but has tenant who has lived there for quite few years. Property Needs new roof in 5 years, roof old two layer kind, water heaters right now, sign of mold not that bad according to inspector just a small area where tenant has laundry hook. There are signs of foundation issues like water leakage in the past, cracks, repairs done on crack, doors not aligning and locking, small step like crack on the front of the house brick wall (picture attached) however inspection confirmed no foundation issues, so thinking of getting professional to look into foundation. Offer accepted at 350K, with rent and all the repair cost needed estimating at 30K (do you think its too low?), my calculation shows no Cash on Cash (COC) return first year, then year 2 : 5%, year 3, 8%. I am really having hard time considering this as good investment? Really appreciate any insight or feedback. :(

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