To invest or not to invest

[Chris Mantell]

I’m trying to get some opinions and different points on view on a duplex I looked at this morning.

Each unit is 2 bed and 1 bath. They rent for $400/month each. I can pick it up for around $50k. There are tenants in the units and they are on month to month.

I had my contractor look at it with me. It’s in pretty rough shape overall. Nothing needs to be done but there are some items that should be. Roof, siding and a full remodel in each unit. My contractor said all of that would be close to $50k.

The dilemma: I can buy the unit and technically do nothing. My payment would probably be around $200-250. So I would

Make around $650/month barring any maintenance fixes. On the downside, if I buy the unit for 50k and put 50k into it now or in the future, I don’t think that it would generate any additional equity. I think a place like this would max out at 100k on a good appraisal.

I'm also in the middle of doing a fire restoration flip for cash and a remodel on a house I'm trying to BRRRR so I'm a bit tied up at the moment.