Advice please

[Petra Ibrahim]

Hello,

I'm a new member of BP and have finally come to a crossroads of actually getting my first property. I've read some books and feel like I have a good grasp of what to look for. I recently put in an offer for seller selling a duplex and house (on the same lot) in Fresno. Both of the 1/1 apartments rent for $550 and the house rents for $850.

It's in one of the more desirable submarkets (so I shouldn't have a problem with vacancy in the future), plus there a long term tenants in place. The selling price was initially $199,000, but I knew that was outrageously high and the seller came near to my asking price $183,000 (I originally offered $180,000).

The address is 745 E La Sierra Dr, Fresno, CA 93728. Using the 50% rule I'd get cash flow of $153. The cap rate is at 7.33. I know these numbers aren't very high, however it is in California and I've heard that generally the cap rates are lower. Also, the seller listed management under expenses, and I won't be using a property manager so that should lower the expenses.

The value on Zillow seems to indicate that it is valued much higher, although I know that Zillow can be off. Also, it looks like the seller bought the property in 2004 for $11,000.

Any advice would be greatly appreciated, especially from anyone familiar with the central valley. I knew I should consult BP before I made the final jump. Thank you in advance for taking time to give me advice.

[Franklin Romine]

Petra call me that seems high. I know Fresno very well.