Buying my first Duplex, is it a good idea?

[Shane Welch]

Hello,

I am starting my first adventure with a 1975 Duplex.  One story, mirrored 2 Bed 1 Bath Units.
This property is in Norfolk, Virginia and is being listed for $183,500.  Each side is currently being rented for $750.

What amount should my offer be for? ( I wanted to offer $160k)
Would renovations be a good ROI for both increasing home value and to raise rent?

Any general advice for me before going forward?

[John West]

Brandon Turner has an analyzing method he uses called the “4 square method”. I recreated it in an excel document and it helps me make sure I have considered all possible expenses (trash, water, sewer, repairs, capital expenditures, taxes... etc.)

Here is a link to his YouTube video:
https://m.youtube.com/watch?v=T_7vhsSBi7c

It’s hard to say without knowing more numbers better, but those margins look quite slim.

A lot of people use the 1% rule as a good starting point. Try to get 1% of purchase price in rental income each month. This rule would suggest it MIGHT be a good deal if you purchased the property for $150,000.