Duplex Investment Property Evaluation - Looking for feedback

[Peter Mikhjian]

Hi everyone, i'm just about to close on a duplex investment property i've been looking at for a few weeks and I wanted to get some feedback on what everyone thinks, here are the details:

Property: Duplex, both sides are 3 bed/2bath, good area (close to downtown, shopping, good schools). Zipcode 28270 in Charlotte, NC

Price: $275k (originally asked for $325k)

Loan: Putting 25% down (yikes!), including taxes and everything, total monthly will be about $1400/month (includes maintenance)

Currently rented: $1925/month total (950 on 1 yr + 975 on month to month)

Both sides haven't been updated since 1988, so it doesn't show well, but structurally, it's perfect.  Also, I think since it shows so poorly, that the rents are super low.  After it's updated, I think we could get in the $1100 to $1300/month range for each side.  Both sides could probably use about $5 to $8k to make them look good.

Do you think this is a good investment?

Thanks

[Kim Giannola]

@Peter Mikhjian

You should still factor in 10% for property management, even if you plan to do it. At some point in your life you will want to get out of managing properties and at that time you don't want your cash flow to disappear just to pay a property manager. Logan is also right, homeowners insurance on a duplex is higher than a SFR. My broker quoted me $600 a year when estimating my monthly payment, and when I called around it was a totally different story. More like $600 per unit, depending on where you live. Also you still need to budget for capex because you property isn't just updated once and is good forever. Every major system in the home has a limited lifespan.

It's good to post your analysis on here and get feedback from others.  You will learn a ton and also save yourself for headaches in the future.  I wish I was on BP before I bought my first property!  Best of luck.