Duplex deal. Would you buy ? Why

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Hello BP. Would you buy this Duplex? Duplex for $205k with rent is $1100 each unit. Total deb service is $1280 for PITI and tenant pay their own utility. Let me know what your opinion ? Your analysis point? Green to buy or not and Why ?

[Paulina Purnama]

Tommy, I feel you. I see all these posts from everyone saying they get $500 per door, they don't accept deals less then 12% cap, they only get 2% rule deals and so on and so forth, BUT where are those deals coming from???? 

I know in most average areas those type of deals are all but impossible unless you are an insider and you are looking for deals full time. Maybe those are only possible in non growth cities? 

I'm currently in Fargo and can barely find 1% gross rent deals. Are the purchase prices in a bubble right now? I'm not sure. But anything in the twin cities metro, heck Fargo metro is not going to get you 10% caps right now. 

You have to ask yourself if the work your putting in and the return you are getting is worth it for your area. 

If you are doing your due diligence and your numbers are accurate and you are ok with a 7% cap then go for it! Get your feet wet and hopefully keep an eye out for that next property that may be the elusive 10% cap.