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Updated about 9 years ago,
New investor advice on Rental property
Hi
I am planning to submit an offer on a rental property in B/C area in a small city close to Dallas Metroplex. Below are the details and can you please advice me, if this is something worth pursuing.
Sale price : $210k (Duplex built in 2005 and 2 open lots of 6000 sqft next to the Duplex)
Repairs : $15,000 (Foundation issues, replace carpet with tiles, kitchen upgrades etc)
Rents : $2000/month (each duplex unit rents for $1000/month) : $24000/year. Tenants pay all utilities
Maintenance (10%) : $2400
Property management (10%) : $2400
Vacancy (10%) : $2400
Taxes & Insurance: $8000
Down payment (25%) and rest conventional financing.
Rents can be increased by ~10%. There is little cash flow after mortgage payments. The two open lots will allow to built two more SFH/Duplex units. Until I decide to built on these lots, the rents from Duplex should be able to sustain it.