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Updated about 7 years ago,
Potential First MFH Property
Hi BP Community! This my first post.
I'm looking at my first potential investment property. It's a duplex in a C class neighborhood.
Below are the expenses:
- Purchase price: $94,000 (conventional financing 25% down w/ 5.375% interest rate)
- Total Rent: $1,250 (both units are identical 2/1)
- Taxes: $75
- Insurance: $8.33
- Vacancy: $125.00 (10%)
- Repairs: $63.50 (5%)
- CapEx: $63.50 (5%)
- Prop. Mgmt: $125.00 (10%)
- Tenant Placement: $52.08
Below are the income values:
- NOI: $3,237.64
- Monthly Cashflow: $269.80
- CoC: 11.70%
- How does it compare against the 2% Rule: 1.33%
The property has a new roof, new windows, new A/C in both units and seems move-in ready. It's about 80 minutes from my primary residence.
What are your thoughts on this property? Is there something else I should be considering? Also, I'm a bit concerned with finding tenants in this area. I checked the local police stats site and this neighborhood has very low reported crime.