Views on First Deal Please

[Matt Blutowski]

I've located a property which I believe is promising and would love some feedback from you pros!

Good condition duplex, selling for $150,000. Rents currently are $975 for the 2 bed/2 bath, and $695 for the 1 bed/ 1 bath: $1670 total. Taxes are $3,000. I'll see the interior today. The exterior building is well cared for, though there is parking potential that hasn't been exploited.

The area is mixed SFH and multis. There aren't very good comps. Current rents seem reasonable for the area. Newer townhomes are mixed with lower middle/middle class SFHs and a variety of multis. A high-end hotel going up now with 200 rooms and scheduled 40some townhomes about 1 mile away.

I'll be buying owner-occupier. Would love questions or opinions. Thanks ahead!

[Jeff Arndt]

Matt,

I think its a good start but you should try to acquire as much information as you can from the previous landlord. When I analyze a deal I take the previous landlords data for expenses and always add a few percentage points to the numbers they gave. A lot of landlords don't account for future repairs and standard maintenance.

I like the idea of adding off street parking. Do you feel that this would warrant an increase in rent? In other words, do a lot of nearby properties currently offer this option?