Updated almost 10 years ago on . Most recent reply
Purchasing a duplex
Hi there,
Relatively new to the forum, and bigger pockets in general. I have always been interested in buying real estate. I am now at a place I think I can start pulling it off. I have a duplex I'm looking at that is 79k. Kind of two questions here.
1) do you think the #'s add up? 79k purchase, income is 1100 total. Based on my math, after all expenses (10% capex, 5% vacancy, 5% repairs, water bill ( landlord pays it), insurance, taxes) i'll be making ~270/month (30 year mortgage at 4% with 20% down). Which seems okay. Currently both units rented, which leads to my next questions.
2)what happens when you take over an existing rental? Assuming both rentals keep their tenants do you make them sign new leases? What about security deposits? Assume they paid deposits is it the previous owner's responsibility to transfer that cash to me? Or does he refund them and I make them cough up a new one? Just curious on the logistics of a transition like this?
Thanks for your help.