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Updated over 6 years ago,
Deal Review-Looking for help on my first offer
I am about to make an offer on a duplex for $137.5K. The roof and A/C were just replaced, I would have have to put in a couple appliances but nothing major. My broker is estimating around $1000/month expenses on a 30-year, I would put down 25% and after origination fees and closing costs I would be looking at $45K out of pocket. Each side of the duplex should rent between 825-875 in a high rental demand market.
With a conservative estimation of $800/side it would have me cash flowing approx $600/month or $7,200/year making my COC, 16%.
In order to fund this deal I would have to liquidate some of my stock portfolio. This stock is returning at 30%.
Do you think this is worth it?