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Updated almost 4 years ago on . Most recent reply
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Should I buy this duplex?
I'm stuck in analysis peralisys and am trying to figure out if this is a good deal. I'm hoping some more experienced investors can give their feedback. Here are the details on the property:
Type: duplex (off market)
Price: $250,000
Down payment: 25%
Interest rate: 3.45%
Year built: 1995
Rent: $995 per unit (both are currently rented with a long term tenant of 4 yrs on one side)
Tax amount: $1,885
Insurance quote: $1,387
Condition: good (no renovations or make-ready costs necessary)
Location: Northwest Arkansas, good location only 6 minutes from a university
This is a fast growing market and properties seem expensive here, but I'd really like to find a deal here since it's near where I live. Any thoughts on this deal would be much appreciated!
Most Popular Reply
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One way to look at this @Aaron Lancaster is to take the rents of $995x2x12=23,880 times the 50% rule (study this) =$11,940/250,000=.04776 or 4.8%. This is a conservative quick study. With todays low rates this would seem good to me. Best to buy it and move in and get permanent low interest financing.
Make you principal and interest payments not to exceed $995 and you should be golden. House hack and have tenant pay your loan payment and you pay the rest. Manage yourself and do little repairs and you are on your way.