Duplex Purchase This Month

[James Huff]

Hello,

I just purchased a duplex in Louisville, Ohio and close soon. I am 25 years old and this is my first investment property. Would you advise a young person like myself to do something like this? 

purchase price 290,000 at 7.35 rate

Can get about 2500-2600 a month in rent. 

happy to answer other questions but I'm very new to this so feeling iffy about it.

[Stephen Tice]

I’m a local guy and have a bunch around stark county. Congratulations on entering the market! I love seeing new investors. Especially in our area. We’re in north canton-Perry-sandy valley-Minerva. Louisville is a very moderate income area that has a LOT of rentals.

For this deal to make sense, you would need to fetch 1450-1750 per side. Single family 4/2s do not get that in that area. If you bought that 3br each side duplex on Michigan Ave, it’s a really nice building. But… Please reevaluate your numbers- I can’t see a way you can possibly cash flow on this with upcoming permits, repairs, utilities, the stark county sewer bill, landscaping and capex. I think it will cost you around 300-600 a month to own and properties in this area generally appreciate at less than 2% per year. I could be way off, but take another look at the numbers- there’s a reason you feel uneasy about it. -Steve