Duplex- First One So Need Help Analyzing!!

[Kelly Kormos]

I just received this info from a realtor and I have not done multi family yet but I do know it is accessed differently.    Working to research now but thought I would provide the details and see if there was any advice on how I can make sure I review all items needed to come up with the best purchase price.  They do not have one so I will need to go over all the details to make an offer based on info I can get from the seller.

"My client has a 2 unit multi-family home

4BR/3BA and 2BR/1.5BA

The unit is fully occupied collecting $2000, but could earn more.

Seller is flexible and motivated. She was living on one side and decided it was all too much for her.

Accepting all offers

Close to schools

Less than 1/2 mile to groceries, shopping and restaurants

Close to emergency services

2 minutes to Park

Large yard for families with small children

On a quiet street

Fully occupied

New water Heaters

New water supply line

New Ducting

New Carpet

New Cabinets and countertops

Rehab bathrooms

All Appliances stay

One tenant is on a month to month the other is on a year lease"

- I will research rental prices for the area

- I need rental rolls from seller correct??

Thanks for any advice!  

Kelly

[Tim Varner]

Hi Kelly,
I’m new to investing and new to the site so take my advice for what it’s worth. I recently purchased a duplex this past summer so I’m starting to learn on the fly along with the help of the podcasts.

For many of the expenses you can estimate based on a percentage as found in the BP calculators. Obviously you will want to know something about the condition of the property i.e. what repairs are needed. It would appear that they have recently done some repairs so that is a good start. When you have an inspection done you can always renegotiate if something major is found. My place is almost 100 years old so there was plenty in the inspection that wasn’t a necessity to have repaired. Don’t let that scare you away as it almost did me.

You should find the taxes on the county assessors website. This with any repairs and an idea of what other similar duplexes have sold for should put you in a good position to put in a competitive offer.

I don’t personally think rent roll is necessary on a duplex especially when the owner was living on one side. Again I’m fairly new to the process so maybe someone would have a different opinion.

Good luck!
Tim