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Updated over 4 years ago on . Most recent reply

Is this a smart first purchase on a duplex?
I saw a duplex in Columbus, Ohio for $275k the other day. Strong bones with more recent upgrades. AC/Furnace (2014), Appliances (2015+), Windows (2007), Electric Boxes (2019), Roof in good shape, etc. I calculated that the duplex will bring in around $2400/month with almost zero renovations if any (Maybe paint and landscaping). My question is, as a first time investment, would it be wise to put a low down payment such as 3-5% and collect small positive cash flow long term say 10+ years?
Broadly analyzing, the 50% rule leaves me with $1200/month for mortgage and cash flow. Putting 5% down with a conventional loan puts my mortgage at around $1,100/month depending on the approved interest rate of the loan. My cash flow would be ~$100/month which seems silly but the duplex doesn't need much work and the property would appreciate over time since I plan on holding it long term. ROI looks good as well. Am I missing anything?
I'm pretty greenhorn to real estate investing so I thought that making a move like this would give me good experience and a good first step in the right direction. Thank you for the replies in advance!
Most Popular Reply

Are you going to live in the property? If its turn key sounds like a good investment, also 50% rule might be too much on a duplex if you are living in one side, it has all those capital improvements and you self manage.
I usually look for value add but if you just want to get in the game I think its good