Newbie analysis paralysis

[Ryan Bartlett]

Hi everyone,

I am a rookie investor/landlord with a couple deals under my belt now. Have hopped on the brrrr strategy train with the goal of finding a good duplex to or tri-plex to implement the strategy on.

Have found a property over the past week I believe could work, a duplex for sale by owner who is retiring and is selling all of his rental property. Asking price is $30,000 and would be a cash deal. The house is a 2700 sq foot duplex built in 1920 in a C+ B- neighborhood. Current assessment is $55,0000. 2 bdrm/1 ba units that rent for 600 a piece and are currently rented on month to month leases. Seller installed all new pex plumbing, circuit breakers etc. Furnaces and hot water heaters are 10+ yrs old. Cosmetically it could use paint and some minor updating but nothing crazy as of now.

The big issue freezing me up on this deal is the roof. It is in rough condition and would need to be replaced. I’ve had three separate contractors give me numbers on replacement and they all quote at $15-20,000 to replace. So after that and other minor repairs I would be all in around $50-55,000. Believe I could get the arv to around $60,000 + when all is said and done.

Should I pull the trigger on this? Offer lower than asking?

Thanks everyone!