All Forum Posts by: Paul Nagy

Hello everyone and a big thanks to all the pros who have repeatedly posted and are giving me recommendations/advice. It is appreciated!

I'm looking at a duplex in a good, upper middle class suburb of Kansas City. It is a 2bd, 1bth, 1 car garage, partially finished basement, side-by-side duplex that needs nothing and both units are currently rented at $750 each per month. It was built in 1986. Tenants pay all utilities.The asking price is $135,000 and I will pay no more than $125,000. The property is in a great school district and on a street and area with mostly duplexes.

I am pre-approved with 20% down at 3.85% for 30 years. Insurance would be $100 per month and taxes are $2,200 per year.

Gracias!

Update - The wierdest thing happened! Either I was lied to or the seller is the biggest idiot on the planet! I offered $86,500 through the listing agent (not using a buyers agent because I can't find one in KC that knows a damn about investment property.) Anyway, the next day the agent told me how embarrassed she was but the seller accidently listed the home for $20,000 less than they owed because they made a mistake and forgot that they re-fied and yada yada yada. She then said they couldn't even sell for the listing price of $105,000 much less my offer. I've never heard of such a boneheaded thing.

So know I've moved on to a new duplex which I'll be making an offer on tomorrow. Frustrating.

Update - foundation inspection was done and property will need between 6-7 piers at a cost of $1150 per pier. With overages I'm assuming $10k to be safe.

Im also thinking of adding walls and a closet to the basement for an official 3rd bedroom. Cost would be between $1500-$2,000 per unit and would add $75 in rent to each unit.

@randy - the ARV is between $125k to $130k. At $115k it would sell in a week.

The finished basement downstairs could be legally used as a bedroom as it is a full walkout. With a few walls added it would be an even "better" bedroom.

@randy - What is ARV? I am plannion holding for 7-10 years.

Also, I know absolutely nothing about foundations but I am having a foundation company come out and take a look at it this week. That'll give me a more realistic idea of what im getting myself into especially cost.

Thx!

@sam Thanks for the quick response! I definitely appreciate you breaking down the numbers for me. Hopefully in the next few days I'll have a better grasp on how much it will cost to repair the foundation issue. Also, the tenants do pay all of the utilities. Additionally, each duplex has a 1 car garage.

Hello all and thx in advance to everyone who has commented and given input on my other similar posts. It's not easy out there to find a GREAT deal and that is exactly why I'm still looking for advice.

I'm looking at a duplex in the Kansas City area that has some sort of foundation issues. This is not my area of expertise but my real estate agent thinks it will need piers. I've built in a few cost assumptions so we'll just go off of them since the exact figures are unknown.

Duplex asking price $107k

I will pay no more than $97k

I am pre-approved at 3.85% with 20% down

Each unit is 2bd, 1 and a half bath with a finished walk-out basement. Each unit is approx 1800 sq ft.

Current rent is $700 per unit, after rehab each unit will fetch $725

Each unit needs around $3,000 of improvements (carpet, paint, etc)

Now....the kicker! Property has some sort of foundation issue and will need work (possibly piers?) The most I am willing to spend for the foundation repair is $10,000

Deal, or no deal?

Thanks, Paul~

@Tevis Verrett - it is a group of stand alone duplexes in a "duplex community" of sorts. Personally, after learning of the HOA I've decided to pass. I don't see the added value in paying $110 per month extra for a pool in Kansas that'll only be open 3 months out of the year and a tennis court no one will use.

Loan through Lawrence Bank in Lawrence KS.

I would be living in one side for 6 months. No points.

Duplex is in Overland Park, KS.

Hello everyone! I've so far put offers on 2 properties and have lost out on both. I'm being extremely sting and aggressive on price. So this is the latest deal I've found....

Side by side duplex, asking price of $149,999

Monthly rent of $800 per unit. Each unit is 2bd, 1bth, 1 car garge and a lower level family room

Pre-approved at 3.85% for 30 yrs

Property tax is $2,000 per year and I estimate insurance at $1,200 per year

There is a $330 quarterly HOA that covers the pool, lawn care and tennis.

Thanks for the help everyone!
Paul ~