Check out this deal for me...thoughts?

[Tris Rollins]

Check out this deal. I ran the numbers and it looks like another potential for me. I ran through the calc and if I do all cash it would cashflow ~$450/mo...Owner doesn't want RE Agents involved....wants all cash, quick close. So that kind of makes me question...but what do you guys think? Assuming no major CAPEX projects, this looks like a no brainer, right? Other things I should look at? research?

Well kept duplex (2 family) with immediate income potential. Long term tenants (14+ years), and upper apartment was recently renovated. Current rental income $1145/ month.
Taxes are approximately $1100/ year. Landlord pays utilities- approximately $200/ month.
2 stall detached garage in great condition used by landlord only.
2 bed, 1 bath upper and lower.


Rare opportunity- motivated seller!

[Natalia Barriuso]

Hello Tris,
I can't say how good the investment is because I don't see your ROI number here. (Maybe I missed it?)
My main concern is your statement "assuming no big CAPEX.." I think you are saying you don't expect to have to put a new roof on or the such. But it is very important to find out exactly, these can of things can be a real deal breaker. Also, are you accounting for 5% for capex on your cash flow?
Anyways, just a thought😊

[Kyle Schlosser]

Purchase price?

[Tris Rollins]

Sorry Guys, PP $45,000. All cash deal would be CoC ROI of 10%...if financed around 23%. Yes, I got my 5% on my calc for CAPEX, amongst other things...I like to add %s just to be safe. I am kind of a sandbagger by nature.

One thing I was looking at was Flood Plain.  It could be in one.  Any idea of where to look this up?  I can email the owner, but I guess its good to know for the future as I search.  

[Tris Rollins]

https://msc.fema.gov/portal/search#searchresultsan...

I answered my own question.  Anyone can go on and search an address at this link to see if their property is in a flood plain.  The property i am looking at is not in one. phew. 

[Douglass Benson]

You might have a couple of dollars going toward Maintenance, Repairs, Property Taxes, Insurance, Legal, Trash, plus your own time and expense that should be factored into the deal.  

My thinking is $45k could possibly be 20% down on a $180k building with a few more units, but that is just me.  

[Kyle Schlosser]

Tris, great catch on the floodplain and thank you for posting the link!

[Tris Rollins]

Just as an update, I met with the owner on this property and toured it.  He is getting a divorce and sold all his properties, this is the last one.  Tenants both have been in the property a long time.  One 3 years, one 14 years.  He said he doesn't have a contract with the one that has been there for 14year...big deal?  Says they both pay on time and all cash.  The one for 14yrs is a dirty tenant for sure, but pays on time and, I guess, never asks for anything...I met both tenants, both very cordial.  Any advice?