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My first deal? I think it just might be but I'm not sure with COV
Hey everyone Jeffery Smith here long time forum reader first time posting.
So I've never done a deal in Colorado Springs I moved here a few months ago and have been renting from a friend of mine however I've been interested in buying a duplex, triplex, or fourplex for quite some time for house hacking. I might have found my first deal but I'm not sure due to the comps in the area. I have found a duplex in Colorado Springs I have gotten in contract down to 255k. I started with it at 305k on the mls and I negotiated down to the 255k because the duplex is occupied with tenants and I don't think they wish to leave. The seller just wants to close quick and be done with the headache. However both tenants have been there for 3 plus years and have very low rents for the area only $700 and $675 however I think I can get them up to 1150-1300 after light renovations. With covid going on right now and everything happening with the election I'm definitely starting to get analysis paralysis that I wont get the tenants out even after I factored giving them a bit of cash to help them on their way. I was allowed to do a walkthrough on the duplex but here's the kicker... only 1 tenant would allow the agent and myself to walk through the property. I got the impression from the one tenant he for sure did not want to leave and the property (on the one half at least) did need very little work. The second unit the tenant was refusing to allow access to the unit and they had changed the lock and was refusing to let the agent and the owner in. I have been doing construction since I was 15 so I know I'll be able to handle the repairs on my own so I'm not worried about that. The numbers part on the turn around and wether or not I legally can evict the tenants after purchasing the property is whats giving me trouble. I don't have an agent I work out here regularly but the few that I talked to wanted me to sign paperwork saying I would only work with them and I didn't feel comfortable about that. I know how to comp out properties for single family homes but I've never got into anything with a duplex and definitely not in the springs. The duplex is 2- 2br 1.5b 800sf with a large backyard and garage split right down the middle with the other (so 4br 4b 1600sf). Its just north of the valley hi golf course on Michigan avenue. First possible deal for me and I plan on buying with all cash and refinancing after I renovate and put new tenants in the unit I will not be living in. I also have had the thought of an air bnb of the unit I'm not living but I am not sure about the laws here.
Please help... analysis paralysis is very real on the first deal...
Thanks Jeff!