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Updated over 7 years ago,

User Stats

4
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0
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Meeno T.
  • Woodbridge, NJ
0
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4
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Buying a duplex with a hostile tenant

Meeno T.
  • Woodbridge, NJ
Posted

I am looking at a duplex in a B+ Neighborhood located in a C- city.  Here are the numbers:

70k purchase from an investor who bought it from a sheriff's sale.  Similar unit down the street sold for a little over 100k.  Duplex built in 90's, had previously sold in the 300's during heyday but I believe market has bottomed out.

Unit one rented at $750 (1bd)

Unit two hostile tenant who would be evicted before closing. (2bd). Can probably rent for 1100 in good condition

Taxes are high: 4500, but appeal has been filed.

HOA: 70/mo (trash, lawn, snow only).

This is my first investment purchase.  I have a good feeling about the area but worried about the damage in the hostile unit.  Since it's relatively new I figure new bath, kitchen, floors and paint at worst.  

This would produce a positive cash flow from the outset assuming I get a rehab and tenant quickly, but want to make sure I'm not missing anything?

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