Seeking Input on 1BD/1BT Duplex

[Chad Truran]

Hi everyone, seeking input on a deal for 1 bed/1 bath duplex. I am not too familiar with 1 bed/bath as far as desirability goes with investors, however the numbers break down as follows:

Price $38K, 11% down payment, Loan payment around $170/month.

Gross rents are $495 per side, total $990/month

W/S/T for each side is paid by owner and total about $130/month for BOTH sides

Mort./Ins/Taxes would equal about $350/month

Will manage myself.

Vacancy rates are pretty low.

I would say the area could be classified as a "C" market

Turn key, ready to go, however it is not occupied as the owner just had to evict(First time ever while under his ownership, did not do a background check) one side and the other side moved to the 1 bedroom house next door.

Owner is selling because he does not have time to manage the units. He owns a very large photography studio.

50% rule says that I may expect 155/month per door?

Looking for info from everyone, however for those of you who own 1BD/1BT duplexes, have they panned out for you? Vacancy rates above normal? Etc.

[Greg Snyder]

Chad: I don't own any 1BD duplexes but I do own 1BD, 1BA condos in the DC area. I find them very easy to rent--I usually get multiple applications whenever I have a vacancy. With a 1BR unit, you only have to find 1 person who wants it (vs a 2 or 3BR unit where you often need to find couple or roommates who want to rent it). Finding 1 good tenant is a lot easier than finding 2 or more good tenants. DC has a strong economy which helps too.

With a duplex, as with any free-standing building, you'll be responsible for all the systems (HVAC, roof, plumbing) so be sure to get a good inspection before settlement. If the numbers work for you, go forward.