Is this a good deal?

[Amy Kircher]

Old house purchase- duplex, is this a good deal?

I am looking at purchasing a 100 year old house that has been turned into a duplex. Asking price is $89,900 current total rent with tenants placed is $1,400. The tenants are ok with everything as is but I am concerned with the wonky floors in a couple of places (newer floating floor actually has cracks in it at a high point in floor) and the roof isn’t exactly straight but has new shingles so may be ok. Several updates have been done such as electrical and plumbing. I would want to fix some walls (painted paneling that looks bad), put in washer/dryers, and reconfigure cabinets in 1 kitchen.

My monthly payment with taxes and insurance:

$600

300 for repairs/vac/cap exp

130 trash/water/sewer for both

140 electric (for just 1 unit)

= 1170.

So Cash flow would be just over $200/mo

I would manage it myself, up rent $50 each unit for w/d and allow one pet for extra $25 mo each unit. So I could add another $150 a month. I feel like rents could be potentially higher (esp. for the 3 bedroom side)

Too close for comfort? The seller isn’t willing to budge too much from the asking price.

Worth buying?

I currently rent out the lower level of my house so I have some experience plus I’m a big DIY’er and want to expand my portfolio. 😃