First Purchase. Duplex

[Rob Glenn]

I’m new so take it easy!

Looking to purchase my first Investment Prop. Small duplex. Property is in need of serious repair. Fortunately I'm set on the avenue to a contractor for the work required. However, I want to BRRRR the property and it's going to take at least 35k to complete. Rent market is $575 per unit. Listing price is 10k. Obviously I'm nervous. Sinking 45k or possibly 55k into my first deal is a little scary. The ARV should be 55k to 75k.

[Jaysen Medhurst]

@Rob Glenn, this could be a good starter deal, but there are risks here.

• Tighten up your ARV. You need a better grasp on what the place will actually be worth.
• With such small numbers, there is very little margin of error. Get good bids from your contractor.
• You may have trouble finding a lender to refi with, consider the low property value. Talk to all your local banks and CUs to see if they have any appropriate products.
• You'll likely have to leave some money in the deal, which isn't the end of the world. Just know that going in.

The good news is that you're looking at ~2% deal. Those are hard to come by. You could potentially cash flow $500+/month.