Buying duplex constructed in 1899 from out of state

[Emmett Burton]

I’m just starting out and trying to acquire my first property. I live in Charlotte and the numbers just don’t make sense out here so I’ve looked out of state.

I think I've located a duplex built in 1899 in a bigger city in Wisconsin that my parents live in so I know the area fairly well. The duplex is fully occupied with rents that are above what I was expecting. I did a virtual walk through with a reputable realtor and she said it looks to be in good condition with new floors and nothing cosmetic that seems to be terribly dated. Even using conservative estimates that assume expenses will be 50% of gross income, the property seems to cash flow. Additionally, this looks like a very attractive BRRRR given the price point and small touch ups that can be done. Are there things I'm not factoring in here? I've been doing a lot of research and reading a lot, but I want to avoid the proverbial analysis paralysis. This looks like it could be too good to be true — caveat emptor.

I know the first investment is more about getting into the game than finding the perfect property, but any suggestions would be much appreciated!

Emmett

[Marcus Auerbach]

@Emmett Burton it's a hot and fast market, but we see great deals on a regular basis - but they are usually under contract within a day or two, so don't wait too long. Your offer is going to be contingent on a home inspection. A good inspector will get you a 30-50 page report with lots of pictures and easy to understand descriptions. Stay away from guys that use check box type reports and no pics. Be sure to understand the age and condition of the major components, roof, HVAC, windows, kitchens, bathrooms and how soon you will have to replace them. Your insoection report should function as a good worksheet for this and any other recommended improvements. But first, tie up the property and take it off the market, before someone else does!