Multi-Family and Apartment Investing
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by
1031 Exchanges
presented by
Real Estate Classifieds
Reviews & Feedback
Updated over 3 years ago,
First Duplex under Contract
Hello everyone,
I am finally under contract for my first Duplex. It is $185,000 and I am putting 25% down since I already have a primary residence. I am also paying closing cost. No repairs are needed and tenants are in place. Property management is 9% of rent and one side rents for $850, and the other for $950. HOA is $30 a month, Taxes are $325, and Insurance is $80. Tenants pay water/sewer/yard maintenance/trash/electrical. So after putting $100 for vacancy and $150 for CapEx/Repairs, I will be looking at a $250 cash flow. I know this isn't the greatest deal, but it is in a great area and I really wanted to get started. When I calculate COCROI it doesn't seem to be the percentage the experts say you should shoot for so I am a little worried, but at the same time excited for the experience.
Would you consider this an okay/average deal or at least not a terrible deal? I appreciate any and all input! Thanks!
I am finally under contract for my first Duplex. It is $185,000 and I am putting 25% down since I already have a primary residence. I am also paying closing cost. No repairs are needed and tenants are in place. Property management is 9% of rent and one side rents for $850, and the other for $950. HOA is $30 a month, Taxes are $325, and Insurance is $80. Tenants pay water/sewer/yard maintenance/trash/electrical. So after putting $100 for vacancy and $150 for CapEx/Repairs, I will be looking at a $250 cash flow. I know this isn't the greatest deal, but it is in a great area and I really wanted to get started. When I calculate COCROI it doesn't seem to be the percentage the experts say you should shoot for so I am a little worried, but at the same time excited for the experience.
Would you consider this an okay/average deal or at least not a terrible deal? I appreciate any and all input! Thanks!