[Calc Review] Help me analyze this deal

[Michael Temple]

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*This link comes directly from our calculators, based on information input by the member who posted

I have a potential deal on a duplex. On the surface, it seems like an OK deal, not great. I am trying to get some opinions on if it is worth pursuing. This belongs to a friend of mine and he doesn't have it listed. They own it outright with no mortgage. I thought it would be a great potential seller-financed deal, but they weren't interested in that or at least not what I initially put together. So now I am trying to look at it as just an outright purchase even though it isn't discounted in any way.

Pros

1. Great condition and is fully rented at $700 per unit (total $1,400 per month)

2. Well maintained. New windows, newer roof, brick exterior, etc. My capital expenditures would probably be minimal for a while.

3. Easy to rent and manage. Current tenants are good, but possibly paying a little bit below market rent.

4. Nice area near a large hospital, which offers great employment and potential future tenants who are employees.

5. If I purchase now I would get a pretty low 30 year fixed mortgage rate.

Cons

1. Full price with no discounts from other listed properties.

2. No way to create forced appreciation. I would pretty much be buying a turn-key investment.

X-Factor

*Maybe* I could interest them in taking the down payment (15%) as seller financing in second position and mortgage the balance thus putting me into the property for very little cash outlay, but this is a big IF since they weren't interested in my previous seller-financed offer.

I am trying to figure out if I should just do this and get into the property and start building equity even though it isn't a killer deal or keep looking for something where I can create more of a BRRRR type deal or buy at a discount. The monthly cash flow (using the BP calculator) isn't great, but I also don't need the money so I could just plow it back into the mortgage and keep paying it down. I am not looking for real cash flow for about 13-15 years (retirement).