Is this a good deal?

[Sam Booth]

I have two opportunities coming up and wondered what you think of these:

Property 1 is a duplex is a 1/1 each side and in a town of about 13K population and they are asking around 425 with zero offers on a duplex that when fully rented would be around 3000 gross rent. Right near the cool old downtown area and good schools and A rated area. On market 120+ days. Has a brand new roof and zoned for adding 3rd unit.

Property 2 is in a larger suburb area with about 80K population and in a county of 2 million. Its a duplex 2/2 each side with gross rents of 4000 and asking is 500K. Multiple offers. B grade area and good schools.

I think property 1 will be easier to get under list price but not sure of vacancy rate since it's a smaller town. Both areas are in my backyard and would be self managed. Both need some renovation. Just purely looking at numbers property 2 comes out ahead buy a few hundred bucks a month depending on how high it gets bid up.

Any advice on this?

[Sam Booth]

Quote from @Account Closed:

Quote from @Sam Booth:

Quote from @Account Closed:

Quote from @Sam Booth:

I have two opportunities coming up and wondered what you think of these:

Property 1 is a duplex is a 1/1 each side and in a town of about 13K population and they are asking around 425 with zero offers on a duplex that when fully rented would be around 3000 gross rent. Right near the cool old downtown area and good schools and A rated area. On market 120+ days. Has a brand new roof and zoned for adding 3rd unit.

Property 2 is in a larger suburb area with about 80K population and in a county of 2 million. Its a duplex 2/2 each side with gross rents of 4000 and asking is 500K. Multiple offers. B grade area and good schools.

I think property 1 will be easier to get under list price but not sure of vacancy rate since it's a smaller town. Both areas are in my backyard and would be self managed. Both need some renovation. Just purely looking at numbers property 2 comes out ahead buy a few hundred bucks a month depending on how high it gets bid up.

Any advice on this?

Make an offer on property 2 that makes sense for you. The other one isn't going to sell right away. Bid on property 2 and see what that brings. If you wind up with property 2, you've answered the question. If property 2 bids up too high for your liking, you chase property 1 to see if you can buy that for a price that makes sense to you.

 Thanks for the advice, are smaller towns okay in your opinion if property 2 doesn't work?

I favor towns of 10,000 to 100,000. The big cities are hard hit by other investors. As long as they are not a one company town. I believe there needs to be diversity of jobs in the area.

 Cool, it's actually the county seat of the county and very low unemployment compared to other areas. Tons of recreation as well so could be good for a short term rental or medium rental