Is the potential worth the price?

[Ellen McKinley]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Pocatello.

Purchase price: $209,900

Duplex, renovated, 860 sq. ft./unit, on .51 acres. Zoned for high density, and has been engineered for 7 more units, 1 4 plex and 1 triplex. If I did it the way they have the plans drawn up, it would change the lot from a nice, green rural feel to more of an asphalt jungle feel, and the parking is far away from the units, in my opinion. I would prefer to add 1-2 duplexes, or maybe a single-family home for myself. Median price for a home in this neighborhood is $174,900, price per sq. ft. $90.

What made you interested in investing in this type of deal?

Moving to Pocatello, and property values are far less here than where I am moving from. Newly retired and looking for a new challenge.

How did you find this deal and how did you negotiate it?

MLS, Realtor.com

How did you finance this deal?

I am pre-approved if I either lease out my current home or sell it outright.

How did you add value to the deal?

Newbie, don't know yet!

[Don Spafford]

Don't be fooled by comparing lower prices in Idaho or any other area to an area that has higher prices. Low price does not necessarily translate to a good investment/cashflow. For a duplex in Pocatello $209k is a little on the high end, but if there is room to build more units, it could potentially be worth it.