All Forum Posts by: Jarred Tate

Good Day to All,

My name is Tate and I currently reside in Corpus Christi, TX. This is my second time posting on BP. My wife and I are getting ready to purchase a duplex. Side A is 3/2.5 and side B is 2/2. There is a carport on the back of the property with four spaces. I am inquiring to see if this is a good deal. Below are the details.

Side A rents for $1475 (VACANT). Side B rents for $1000 (OCCUPIED). Purchase price will be $210,000 with the seller paying up to $5,000 in closing costs. Closing costs are looking to be about $5,000.

Our loan will be 20% down at 5.25% for 30 years. P&I=905.61. Insurance=~$140. Taxes=$343.91.

Both units are in good shape (no repairs, maybe paint, but not required) and are separately metered for water and electric. Side B tenant moved in last week on a 1 year lease. The plan is to meet up with the seller in the near future and write up a contract. Once the contract is written, we will order inspections and re-negotiate price if needed based on repairs. For those who know about South Texas, the property is windstorm certified.

Based on the numbers, would you purchase this property? Thanks for you input.

Hayden,

Thanks for asking. The duplex needed about $20k of foundation work done and the seller was not willing to negotiate the price any lower, so we walked away. But it was a good learning experience and we picked up a foundation guy that inspects foundations for free (most all do anyway); however, he also knows what to look for to see if it's worth having an inspector come out to look at the property. This way, next time we can save some money by not wasting it on getting a house inspected that is too far gone for things other than the foundation. 

As you probably already know, there aren't many multi-family properties to choose from out here in South Texas (I believe there are 26 total at this time ranging from $89k-$1.2M). 

We are currently getting ready to move forward on a different duplex, so we will see how this one goes. 

When will you be in Corpus?

Lisa,

That was very helpful. I have a home inspection, pest inspection and hydrostatic testing all lined up. The roof was certified back in 1995. Anything else? If there is nothing else to consider at this time, I guess it is a waiting game to see what the results from the inspections are. Thank you, again, for the help.

Jim Thanks!

This deal is being done without a realtor. I have my realtor on the side helping me out with paperwork and the process, but he is not officially involved. I have a general home inspection scheduled. I will make sure to have the pest and hydrostatic inspections setup, as I am not sure if the inspector I have scheduled will cover those items as well. I will ask about the WPI, to see if it currently has it. It has a metal roof, but I need to see what the date is that they changed it to that. Thank you for your time and quick response. If there is anything else, inspection or numbers wise I need to think about, any thoughts are greatly appreciated.

Good day to all. I am new to real estate investing and even newer to bigger pockets, so I am not even sure this post will end up where it should. The wife and I are about to purchase a 2/1 duplex in Corpus Christi, TX. The purchase price will be $85,000. We have already been pre-approved for up to $100,000. We will be required to put 25% down and the interest rate for the loan will be at 4.625% over a 30 year period. The taxes on the property are $2,600 per year. I am assuming $1,500 per year for insurance (calling about that tomorrow!) After purchase, we will rehab both units for $7,500 each ($15,000 total). I am assuming $5,000 in closing costs. Both units will be vacant at the time of purchase, as the seller did not renew a lease agreement with current tenants and they will be vacating. The anticipated rent for each unit is anywhere from $850-$1,100 per month ($1,700-$2,200) based on a Craig's List Comp Search (Thanks Bigger Pockets Podcast #40). I am basing my numbers off of $850 per unit per month. I am confident we will get $925 per unit per month, but to stay conservative we have chosen to go with the $850 per month per unit. Does this sound like a good deal? Is there anything I have not considered? Thank you for your time. Have a blessed one.