How can i improve my first duplex

[Andi Leka]

Hello again,

I'm finally closing on my first deal, a duplex 1 bed 1 bath each unit.

Both units occupied and they pay $450 each.

I bought it for 93k and it needs 15-20k rehab.

I can leave it as is and cash flow $400 a month or i can fix it up a little and make $600 on each unit.

My problem is that i never had to deal with tenants before and i don't feel good if I'll have to evict them.

Any opinions ?

[Evan Polaski]

@Andi Leka, first, you can't just evict a tenant so you can rehab the unit.  There needs to be a material breach in lease terms to be able to evict.  Maybe you used the term "evict" more generally, but rule one: be careful the language you use.  Evict is a specific legal term.

If you numbers are accurate: $20k rehab or 10k per unit to get $200/mo or 2400/yr in increased rent or 24% ROI, I would go for it. Assuming the tenants are on leases, you will have to wait until the leases expire, and I typically give a lot of notice that I will not be renewing. Most state laws seem to require 30 days notice if you will not be renewing.