I am a beginner investor in Charleston, SC. Looking to Buy and Hold properties for cash flow. Currently have made an offer on a duplex for around $110K. There are a few sticking points that I have and I was hoping for constructive criticism or advice.
The duplex was originally listed for $120K and we have negotiated the seller down to $109.5K and the seller is to pay 3% of closing costs. I believe I can rent both units for around $710 per month each. $109.5K is the exact price the duplex next door sold for in 2013 so it is comparable.
One unit is lived in by the owner. She has asked as part of the sales contract to live in the unit for six months at a rate of $600/month.
The other unit has a tenant until June 2014 and is renting at a reduced rate of $650 per month because the homeowner knows the tenant. Additionally, the tenant had a lower than normal security deposit of $350 because they painted the entire unit (it does look pretty good).
The third issue is the homeowner had the fireplaces removed. I do not know if the comparable had the fireplaces removed or now.
Should I pull the trigger? Subtracting expected expenses I hope to be cash flowing about $200/month
