Would you purchase this duplex?

[Sam Collins]

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Good Morning BP community,

I am trying to analyze a duplex that is right by my house to see if it is worth buying. I have attached the BP rental calculator report to this post. I will be self managing the property but i included the 10% management fee just incase i ever decide to let a property manager take over. Median rent in the area for a 3/2 is $1400. i set my numbers at $1200 mainly because i wasnt sure if duplexes rent for less than a stand alone house. This will be my first multifamily to submit an offer on so any help would be appreciated.

Their asking price is at $330K. i offered $230K and they counter offered at $285K bottom dollar. im thinking i can still get them to come down though.

heres the important details:

285K purchase price

- $235 cash flow

- 3.69% CoC ROI

- Purchase Cap 5.23%

250K purchase price 

- $357 cash flow

- 6.35% CoC ROI

- Purchase cap 5.95%

[Kamil Baldyga]

Hey Sam! So it's difficult for anyone to say if an investment is a "good" deal or not because "good" means different things to different people. For example, I like to use the performance metric of ROI and I think 3.69% is pretty weak. At the same time though, you're getting $235 cash flow and you would own your first multifamily, which is awesome. Properties also typically perform better as time goes on. It is a long term investment after all. My advice would be to verify the rental rates and to define what your "good" deal is. I know this is an answer without actually giving an answer but I hope it helps. Let me know if you have any questions!