All Forum Posts by: Reece Cook

Wow appreciate the quick responses from everyone! Very informative. Amy you would be correct in your assumptions! Based on everyone's responses and my gut feeling I think I will pass on it. Owning half of a roof with or without an HOA just doesn't seem like the best decision. Id rather wait on an opportunity to own a full duplex. Nathan makes a decent point on appreciation potential as well.

Hello Everyone, 

This is my first post, I am a new investor in the Baton Rouge Area. Currently working as a Constuction Project Manager. 

I have a family friend who is selling half a duplex (vacant). He states he just doesnt have time to get into real estate like he was hoping too. He bought the half duplex for 85,000 cash in 2021 and said he would sell it to me for 88,000. The property is in decent shape. He states it cash flows very well.(Rent 1200).He can stick a sign out and get 10 calls a day. However im suspecting most of the tenants in this area are undocumented immigrants as he says they all pay cash. He says his past cash paying tenants have actually been very good tenants and left the place spotless. He stated the HOA fee is around 200 dollars a month but if you ever need a new roof or exterior improvements the HOA will pay for it.

What are yalls thoughts and opinions for a first time investment? I would have to get a traditional bank loan or ask him if he can do seller financing and ill pay him 10% down. One part of me says not a bad deal to start getting some cash flow but another part of me says to save up more money and start cold calling which i have done a couple times already and look for an entire duplex or quadplex in the area. Also been looking at properties to BRRR.