Twin Home first time investor looki fongr opinions

[Dan Verdick]

Hello,

I am new to investing in real estate. We are considering purchasing a slab Twin Home in our town. It has been held by the original builder/owner since 1986. The home is currently rented and he is just wanting to sell since they are moving to another part of the state for retirement. Here are the details:

Each unit has Two Bedrooms, Attached Garage, Large yard, All living Facilities on one level, Washer and Dryer, Range and Refrigerator, 964 sqft each side, New furnaces 2005 and Roof 2006. Painted this summer.

Asking price: $196,000

Current rent: $850 and $900

Taxes: $2900

Ins: $1000

Tenants pay utilities. Previous owner took care of maintenance.

Thanks

Dan

[Aaron Montague]

This deal doesn't look too bad at 160k purchase. 20% down, 5.5 rate. 1000 for repairs.

I figured $200/month in general repairs, a 10% management fee and got $315/month in cash flow for a 9.3% ROI.

Rentometer says your rents are high but that probably is talking about 2 bedroom apartments, not houses.

At 185 I get an ROI of 4.5. At 175 ROI is 6.3. Remember: if your first offer isn't insulting, it is too high.

I was looking for comps and according to Realtor.com, there isn't a single multi family house for sale in all of Elk River. I'd be more inclined to look at:

12725 Fremont Ave, Zimmerman, MN 55398

2236 State Ave, Anoka, MN 55303
529 Cross St, Anoka, MN 55303