Starting Out
Market News & Data
General Info
Real Estate Strategies
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hospitable-deef083b895516ce26951b0ca48cf8f170861d742d4a4cb6cf5d19396b5eaac6.png)
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_trust-2bcce80d03411a9e99a3cbcf4201c034562e18a3fc6eecd3fd22ecd5350c3aa5.avif)
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_1031_exchange-96bbcda3f8ad2d724c0ac759709c7e295979badd52e428240d6eaad5c8eff385.avif)
Real Estate Classifieds
Reviews & Feedback
Updated about 4 years ago on . Most recent reply
![Marshal Amon's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/1968606/1621517159-avatar-marshala2.jpg?twic=v1/output=image/crop=369x369@0x52/cover=128x128&v=2)
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
![Reece Iovine's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/555294/1621492481-avatar-reeceiovine.jpg?twic=v1/output=image/crop=2399x2399@0x0/cover=128x128&v=2)
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