Converted single family to duplex deal

[Hal Cranmer]

I found a duplex on CL near a bunch of my other properties. The seller has dropped his price to $106K and says it does not need any repairs. The duplex is a converted SFH so the utilities are not split (landlord pays). The rents for each unit are $800 per month for a total of $19,200. The seller says taxes, insurance and utilities run about $6,800 per year consistently.
The seller also said he would do a contract for deed (seller financing) with a decent downpayment.

So I was thinking of seeing if I could wholesale it to a newer investor. They could put $10K or so down and clear $6-$700 per month cash flow. Then they could refinance it in a couple of years when the CD comes due and not owe much at all if they saved the net rental profits.

I would be interested in what everyone thought? I will verify everything and I have a few prospects of people who want to get into this.

[James Hamling]

Hal,

I first gotta second the question as to if it is a legal split. I had a good run going as a contractor converting SFH into duplex's, and splitting the utilities is always done, always.

And if it is legal, still, check into splitting them because that added cost is a big turn off, namely because it can fluctuate wildly based upon tenant usage, and if it is free tenants will use it freely.

If you are looking to wholesale rentals get in touch with me, I can steer you to a very good source of them that are a good deal for you and the landlord.
Yes you 'could" sell some junk deal to a novice investor, but really should you. There is a sea of great deals to do and make great money, keep the moral bar high and build a titanium reputation. You do that, and business will seek you out.