Is this a deal?

[Grace Wang]

Was offered with a turnkey deal in Indiananpolis, IN

Duplex, 2 bedroom and 2 bath (1 bed, 1 bath each unit)

Monthly rent : 1100 ($550 each side)

Tax per year: $684

Acquisition cost: $35,000 (per zillow, it was selling for 21,900)

Rehab cost: $10,000

Total cost: $45,000

Is this a deal?

[Lee Smith]

Couple of things I forgot to mention.. Small multifams, in most cases, you are going to need to take care of the lawns.

You need to make sure utilities are separated, otherwise you will end up paying them.. That may be why the rents were $550, because you end up paying some of the utils.. In most cases your paying utilities is NOT something you want to deal with.. Water is the easiest for you to pay for, after that I start to get twitchy on the "don't buy" button...

When owner pays the utilities, you get tenants who crank the heat up in the winter, and when they are too hot they open a window to cool down... Ask me how I know!

Lastly, those taxes were DIRT cheap... I would bet money they will double.  Someone probably had exemptions filed on them, or the appraised value is really low... Appraised value would be nicer, because it generally takes a while for the appraised value to raise, but it will at some point....  Taxes for investors are 2% of appraised value for investors of residential properties(less than 4 units typically)... 3% for commercial properties(4 units or more typically).