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Updated over 17 years ago on . Most recent reply

First time investor wondering if this is a good deal
It is a foreclosure duplex 2600 sq ft assessed for 94k
Asking 35k I will offer 25k plus 10k to fix up
Before the bank took it the property was renting 650 per unit with tenant paying for everything
The agent told me that the previous rent was a little lower than market for a 3br apt.
Income
Annual rent (based on 600 per unit) 14400
Expenses
Taxes-3900
Insurance-980
Property management-1440
Vacancy(5%)-720
Maintenance- 1440
Total-8480
Net Profit- 5920
Loan at 8% with 3500 down= 231/per month, annual- 2772
5920-2772= Cash flow- 3148
The agent said That after fixed I could get easily mid 60's and that is even 30% below assessed value so should I cash flow this or just flip or neither and wait for a better deal? Thanks John