Recently Closed On A Duplex

[Benjamin Riehle]

We recently closed on a duplex near downtown Tucson. This duplex was only on the market for a few hours before we were able to get it under contract (the good deals go VERY quickly). The location is one that we've identified due to Tucson's up and coming metro area. As a result, the economic growth will impact the values of the properties in the surrounding areas for the better. 

Rundown of the Deal: 

-Property Description: Two unit duplex 2 Bedroom 1 Bath built in 2012     

-Purchase Price: $134,500

-25% Down Payment: $33,625 (many options available for lower down payment)

-Monthly Mortgage Payment: $665 (property tax, insurance interest and principle)

            -$150 per month principle pay down in month one.

-Monthly Expenses: $325 (property management, repairs, ect.)

-Monthly Rental Income: $1,300 per month ($650 per unit)

-Monthly Cash Flow: $310 

-Total Yearly Return: $5,520 (including principle paydown)

Great deal with this one but the key here was SPEED! You must have a strong understanding of the market in your city. If you have a strong understanding of the area, the numbers make sense, and you're in a position to invest in real estate, take action.