4 Unit Offer

[Gary Miller]

I'm currently working on purchasing two duplexes. These are unlisted properties. The first one is a 2 bedroom upper with 3 bedroom lower. The second property is a 2 bed upper and a 2 bed lower. The first one I would finance through a va loan. The second property I would use a 5/1 ARM to finance. After going back and forth with the owner for the past almost two weeks and looking at the properties we agreed on $116,000 for both. Between both houses the combined rent would be $2,400/month. On one property I'm right on the market value of the house but the second property after comping it is around 30k under(if you average both properties from the $116,000). I'm still working on the financing but I'm not sure what type of downpayment I am looking at for the ARM(considering each property is being sold for $58,000). This will be my first deal. The Cap Rate is right and in this case the ARV on the one property is fairly high. Both properties need around $5,000 of repairs/updates which I will do myself. Just wanted some thoughts about the deal.