2nd property Duplex deal

[John Adamkewitz]

Hi, I'm looking at this Duplex as My next (2nd) property. I'm hands on maintenance. Buy and hold for cash flow.

$165000 purchase price.

$1600 gross rents. Tenants pay all utility's. 2 bedroom, 1 bath. 1 car garage and full basements per side.

$2850 property taxes.

$800 insurance.

20% down @4% mortgage.

House is built in 1995 and is in excellent shape, w/new roof in 2010.

Would have to do lawn and snow Myself.

Here's the angle. Both basements are plumbed/stubbed for another full bath. With room for another legal bedroom and a nice size family room. Estimated cost of this upgrade $10-15k depending on finishes. Perimeter walls already insulated and drywalled. Electric service has room and hvac already ducted.

Potential rents of $1800-1900, realtor says more. I don't know.

I offered $160k (1% rule). They countered at $165k. Which is the new asking price, as of 2 weeks ago.

Owner was asking 185k for about a year. I'm on the fence here.

John

[Steven J.]

I think you answered your question yourself in your last post. You mention that you're 'leaning' on walking away. And that you've been looking hard for 6 months.

I think if you're not excited about a deal then its not a deal that you're going to feel comfortable with because the numbers aren't what you want for your criteria.

And 6 months maybe isn't long enough. It seems like a long time and maybe you've looked at 25 plexes in that time. Maybe you won't find your ideal deal until you see property #78. Figure out your averages. If you find one deal for every 100 properties you see (which seems to be a standard goal) then you need to see at least 100 properties.