First of all, thank you for taking the time to read this. Probably a very newbie question. I'm looking at purchasing an older Duplex in Downtown Houston in the 77004 zip code. There seems to be development/revitalization in the area that was previously considered the ghetto. Mind you, it's still the ghetto nonetheless. However, there are new builds that are popping up around the area (within a quarter mile radius). The skinny, three story homes built on 1800 sqft lots and these are going for around $300-$350K each. The property is about one mile from Downtown Houston and about 1.5 miles from some of the major attractions in the area.
The home was "renovated" two years ago with a new roof, plumbing upgrades, and electrical. Per the seller, the maintenance costs have been very minimal.
Here are some facts on the property:
Selling price $222K
Lot size 5000sqft
Rental income $1600 monthly
5% Management
$1000 insurance, annually
$3500 taxes, annually
$1000 maintenance
one tenant has been therre 47 years.. Yes 47 years. The other one has been there going on 4 years and doesn't want to leave.
I don't know if this is a good investment or not. Cash flow is minimal to nil, but if the revitalization continues, then the property can increase in value. But these are unknowns. Hopefully someone with some background in this could assist with this. Would you consider buying this property? Thank you in advance for your responses.
