Quote from @Victor S.:
too many unknowns. judging by the monthly rent per side, this appears to be a C are at best. are you prepared to be a landlord, or are you going to outsource to a PM for at least 10%/month? if this was such a banging deal, why are they coming to you? the color scheme tells me this was/is a flipper's house. so what happened to them? did they go bust or did they find something that they wan to offload to a sucker like you? (no offense)
even if everything checks out, the 20k "estimate" to complete the other side was pulled out of your behind. i'd triple and quadruple check the numbers with actual contractors (if you can still find those), unless you're going to be doing a diy on it yourself (then double your timeline without cash flow on that side). your mind is overshadowed by potential success without giving any consideration to what can go south on this and quickly. the outrageous financing alone should give you a pause. in the end, you'll be out $45k-50k cash (best case scenario) to cash flow $100/mo? (if not negative, as your piti will be around 700-800/mo) forget about that "ARV" also. with the way things are looking right now, those are not real numbers either.
all this to not discourage you, but to come to the table prepared for the twists and turns that are surely going to be there waiting for you.
This is every single bit of what has gone through my head since I was brought the deal Friday. Like I said 24, and new to a lot of this. Want to be able to make it work because I would like to invest my money into real estate. It’s got new hvac on both sides, new siding, blown in insulation, new windows. I have the time to work on it myself and at least collect rent from other side to cover most of the mortgage. The duplex definitely comps for 175k fixed up. And I work for Sherwin and with a lot of contractors 20k would have that place looking great. But I completely understand. That’s why I was here looking for insight because I know it’s probably not the best deal but hard to come by duplex’s for 100k that you can probably get 700 a month for sooner or later.
