2 unit rental evaluation

[Rich Comstock]

Looking at a duplex listed for $135,000.

Duplex is in great shape however needs about $10,000 in upgrades to update it  

$1,400 monthly rental income 

$6,000 annual taxes

$1,000 annual Insurnace 

I’m estimating this is only a fraction over 1% which doesn’t meet the 2% rule.

Any thoughts or suggestions are greatly appreciated.  

[John Warren]

@Rich Comstock I am not seeing the 2% rule anywhere, so I wouldn't base the decision on that. More importantly, what kind of area is this property in? Is this an A, B, C or D area? If it is in an A or B class area I would strongly consider it. If it is a C, make sure your numbers are tight. If it is a D class area, run!