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Updated almost 5 years ago,

User Stats

18
Posts
8
Votes
Jordan Alexander
Pro Member
  • Rental Property Investor
  • Muskogee, OK
8
Votes |
18
Posts

Need Advice: Looking at this 2% rule 3 unit prop as my 2nd Deal

Jordan Alexander
Pro Member
  • Rental Property Investor
  • Muskogee, OK
Posted

Class C neighborhood, 3 units on the property, one duplex 1 bed 1 bath apt (both are already rented currently), & one 3 bed 1 bath house. Gross rent is expected at $1600-1700 with a purchase price of $70,000 (1st time I've seen anything of 2% rule). All units are cleaned well and some updates have been made to paint, flooring, bathroom fixtures, and 4 new windows.

Here are the negatives: No central heating or air, built in 1946, the duplex is metered together & costs approximately $150 per month, there are small waves in the flooring in 1 of the bedrooms, no stove or other appliances yet added.

My thoughts: Some of the numbers seem too good to be true but at the same time I can't help but see big rehab numbers if I need to get HVAC and ducts installed (this makes me the most nervous). I'm currently without a huge cash position. 

Please comment and provide anything I should be thinking about to analyze this deal better and/or if this is just too good of a deal and I need to jump all in. Thanks!

  • Jordan Alexander
  • Loading replies...