All Forum Posts by: Brenda Reems

Thank you for your response. This areas is great for MTR. Furnished units are renting from $1,200-1,800 for a 2 bedroom. This duplex has 1 2bd and the other is a 3bd. However, with that the tenant would no longer pay all utilities and would need to furnish. I work in the hospital and the travelers biggest complaint is that there isn't housing available. This town has a military base, fairly good sized hospital (for the region) and a university. 

Does that change your perspective?

I thought I had the numbers down "knew what I was doing". But, now I'm just getting confused. This is a duplex. Not a lot of repairs need to be done at this point. Maybe some paint after current tenants move out and in 5 years or so some other cosmetic stuff. Tenants do snow removal/lawn care and pay for all utilities. I would take out a loan with a 20% downpayment

Selling price: $205,000

Unit 1 is renting for $1,000

Unit 2 is renting for $800

Property tax: $2781

Insurance: $1145

Maintenance and repairs: I calculated at $3,000 (that's what previous owner listed but I'm really not sure.)

Without adjusting any of the previous owners numbers (there may be potential for increase rent), I calculated a pre-tax take home of $149/month or $1,800/year. I calculate the CoC return of only 3.6%. I'm assuming that if the numbers don't change (unless there is rent increases), this would not be considered a good deal, correct? I am a numbers girl, but I am getting confused at this time.

 I am not sure how to do this. I usually do not work with a realtor. So, I just use realtor.com, zillow, FB marketplace and local websites. 

It seems to me that there is some potential for buying foreclosures at auction. I am just starting out but I'm assuming, I am correct. But I'm also assuming there are a lot more downsides to this than I am foreseeing. Lets just say an opening bid is for $75,000 but the market value is $240,000. Even if you have to put another $75,000 into the property, that should still be a good deal. If you can rent it for $2,000 that is a ROI of 13% roughly. What am I missing? Sorry, I have tried finding this question on the forums but I haven't been able to find it. My plan would be to use cash and then finance later so I didn't have $150,000 tied into the 1 property.