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Updated about 6 years ago, 11/01/2018
Analysis Paralysis: my first deal (Duplex)
I'm a total newbie to Bigger Pockets, but not to Real Estate in general. My husband and I have flipped (cosmetic updates) a couple houses that we've lived in and are ready to make a move to a buy and hold rental property. We are in a deal right now and I keep going back and forth on it.
I have a bad habit of analysis paralysis... so I'd love someone else's input on if this deal makes sense.
Property is in a D neighborhood. Section 8 would be welcome. Each unit should rent for $500/mo. The street is rundown. Comps range from $10k-$50k. It is basically a house they turned into a duplex (2) one bedroom units, one upstairs and one downstairs, separate furnaces and ac units but they share electric. Separate detached one car garage. Both units come with w/d, refrigerator, and stove and look good. One unit is good to go, just need to clean, paint and fix the toilet. Bottom unit needs all new flooring and paint (smoker). Siding and windows are newer. Roof looks good. The issue is, it needs some structural reinforcing in the basement. The first floor is sagging. Deal price is $22,500.
Do you recommend first time investors steer clear of properties with structural issues? Is that a red flag that seasoned investors stay away from? The other issue is the street. I don't know what these other houses looked like on the inside to fairly compare our duplex. Is it ok to only think about cash flow, in the event appreciation isn't there? TIA!