New Investor in Lincoln, NE

[Daniel Jackson]

Hello! I've been reading BiggerPockets for the last several years and have just about gotten ready to make the plunge. I have $15,000 saved for a down payment. So, if I'm not doing an owner-occupy, I can afford something in the $60,000-$70,000 range. I just looked at a duplex with long-term tenants on either side ($500 each side). The building is in a bit of rough condition, but completely livable. The owner lists the property for $69,000 but repeated many times that he is "VERY motivated"--because even though the cash flow is good (he says), the maintenance is too much work. The property is already listed for less than you would expect because of a very cracked foundation (basement) and I-beams bracing the basement's outside walls. 

Could someone look over these numbers and consider if you think this property is even worth consideration? Taxes are about $1,250 per year.

[Stephen Anthony]

Foundation issues cause hesitancy even for experienced investors, that may be why this listing has sat there quite awhile (because it has). But who knows, that could make it a great deal if you can get the owner to come down on the price.

I would absolutely not close without a foundation expert looking at everything though. If you choose to put it under contract prior to them looking at it, make sure you have a contingency for results of inspections in your offer/purchase agreement.