Anyone think this would be a good deal?

Question

Hello so I saw this duplex in west valley for 285K and is 4bed 2 bath it was build in 1977 and requires some updates and repair the duplex located in a c class area. I’m estimating the rent will be 1000 per side If I put 20% down which is 59,000 the Mortage is around 1400 a month. Is this a good deal to pursuit or is it better to leverage my money elsewhere?

Megan Arzt · Answer

I always run my numbers 2 ways....the actual numbers (always estimate on the conservative side) and then as if the down payment was $0-. If that makes the cash flow negative I don't buy it.... I don't want pay someone else to live there. If it's in the positive it's not necessarily a good deal, but if it's in the negative I consider it a bad deal.

Michael De Rosa · Answer

When running your numbers you need to calculate the cost of repairs too. Based on the price in WVC your assessment of a C neighborhood is probably correct. You will tend to get more cash flow since you get less appreciation on average on that area.

What type of repairs are required, how many other duplexes are in the same area, what would be the rent after you fixed it up, are there transit stops near by, do you plan to occupy one side, and how long do you plan to stay in this deal?

Tristan Church · Answer

That sounds like it has some potential. Have you used the rental property calculator yet? Go up and hit the tab tools and then rental property calculator, it can help you analyze a deal to see if it's a good deal or not. Sounds like, based on these limited numbers, that you'd be making around $600 a month if you have no expenses.