All Forum Posts by: Adam K.

Thank you all for the valuable inputs, the amount of constructive comments really helped put things into perspective. I have read every comment and discussed it with my wife, but for unseen circumstances we will be unable to proceed on this property. We are frustrated about this but not because we fell in love with it. But we have devoted a large amount of energy and time towards this property. We are moving on and looking forward to analyzing more properties!

@Sean Ade Hi Sean. The -$256 is after both rents are factored in. The $2700 per month is monthly rent from both sides once we move out and have made improvements to the property. Some of our calculated expenses might be a little high, especially since we plan the manage the property ourselves for a long time. But we also do not want to be fudging the numbers to force this deal to work, if it really is not a good deal. We want to be prepared and plan for anything that may come up and cost us money in the future with this property.

Our goal is to buy and hold long term. We will live in it for the first year or two, possibly longer if we need or want to, and then we will rent out both sides. We plan to make cosmetic improvements to the properties, like making the kitchens nicer, and hopefully finding a way to move the washer and dryers inside to each unit. They currently share a washer and dryer that is located outside. None of these items are things we have to do right away, the property is turn key as it sits. There is also a tenant currently living in one side. We want to add value to the property so that we can increase the rent to market value. 

@Adam Gollatz, You are right, this is a good deal because it is under market value and we know that we will have 50k equity as soon as we sign. Is putting down a larger down payment the only way to make this deal work? The property is turn key and the seller has already agreed to replace the roof. I just don't want to pass this up,  it seems like even the "deals" are just traps.

We found a good deal on a duplex in Puyallup, WA. Duplexes in this area have been going for $380,000 and above. After running the numbers, it does not seem to be as good of a deal as we thought. Are we doing something wrong in our calculations? We are using our VA loan, and will be living in one side at first, however we estimated the rental income for both sides once we move out. We are also not putting any money down, since we are using our VA loan and are not required to.