Good Deal Or Too Good To Be True
Recently, through scrolling through listings in one of the markets that interests me I found a "package deal" of two duplexs and a single family house. The information shown on the listing says the current rents of the tenants in each unit. And, through running the numbers based off of the listing prices, I have found that they should all cashflow at or above an 11% ROI. I am a new investor, meaning I dont currently own any properties, and think that househacking one of these while owning the other two (all in the same neigborhood) might be a great start, especially after looking at all the numbers.
All in all does this sound too good to be true and/ or way in over my head? Or is this a deal that I should dive into?
Most Popular Reply
I am not familiar with Ohio, but for how much people praise OH here on the forums, I would expect that you could get better returns than the ones you described in your post @Nate Ziegler. The margins seem very thing on this one as @Kwame Amoako mentioned. You're talking about a 1% ish here on the "1% rule", which definitely doesn't sound "too good to be true".
Don't forget to calculate all of the expenses that so often get overlooked like @Scott Swanson mentioned!