First Duplex in C class neighbourhood

[Devon Tronrud]

I'm currently looking into a duplex in a c class neighbourhood to buy And hold. It's in good shape but could use some lipstick. It's 135k. I plan to put maybe 5k into small upgrades and rent it out. Here's the numbers. ( I live in Canada) Mortgage: 551 p/m Rents: 2000 total Property tax: 1700 annually Insurance: 100 p/m This is my first actual income property. I own my own home right now and have renters paying my mortgage. The house has new windows, shingles, furnace and hwt. Tenants pay water and hydro and are on separate metres. I'm 23 and I'd appreciate any tips or advice. Also this being my first post, greeting BP users.

[Nathan Gesner]

Welcome to BiggerPockets! if your numbers are correct, you'll be cash flowing over a thousand a month which makes this look like a good investment. here are a few things to consider: 1. Will you manage on your own or hire a property manager? 2. If you intend to manage on your own, are you prepared? Do you have a lease or policies on how to deal with problem tenants? Do you know the law? Do you know where to go for help? A C-class property can be difficult even for an experienced investor. If you wait until problems pop up and then try to figure out how to solve them, you will be behind the eight ball and it will burn you out in no time flat. 3. If you intend to hire a property manager (highly, highly recommended for a C-Class property and a new investor), do you know how to find a good one? don't wait until you buy the property to start looking! You also don't want to go with the cheapest one you can find. Educate yourself on the difference between a good property manager and a bad one then start looking and interviewing now. In fact, you can find a property manager and have them look at the property to see whether or not they think it's a solid investment or a money trap. 4. Have you had anyone with experience look at this property for you to provide an objective analysis? You can post numbers all day long on this forum and get free advice but I highly recommend you find an experienced investor that can put eyes on the property and neighborhood to verify it's a C-Class and not a D-minus! you also want an experienced person to look at the existing lease agreements, deferred maintenance, or other red flags. There are probably a hundred more legitimate questions to ask but this should be a good start.