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Updated over 5 years ago on .

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Rondel Felix
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Deciding between two properties

Rondel Felix
Posted

*The situation that we have is that there are two properties we are deciding between. 

*Property A is a mortgage 4-plex bringing in $3200 gross and $1600 net a month. There is not much room for ARV improvements so a BRRRR strategy would not be used here (they are basically asking for what it is assessed for). This property only needs minor cosmetic updates (total of less than $10,000). Asking price $100,000. ROI= 32.20%

*Property B is a cash-buy duplex that they are asking $43,000 less than the current assessed value. We analyzed that the ARV will be 3 times the purchase amount. Rent would be $1800 gross and $900 net a month after we do all necessary repairs. (This property needs repairs totalling $35,000). Asking price $60,000. ROI=16.24

*Our dilemma is that property A only has off-street parking for 1 unit and has limited on-street parking, but 3 of the 4 units are currently  rented. Whereas property B has 2 separate driveways but will take more time before it is ready to rent. 

*In this situation how important is it for each unit to have their own parking? Is it a deal breaker for most tenants? 

*With this information which do you pick Property A or Property B.