Just as a quick summary, I'm looking at a 2 unit property that is listed for $59,900. Each unit has 2 beds and 1 bath for a total of $1100 in rental income per month ($600 for lower unit and $500 for upper unit). The lower unit has a tenant with a 2 year lease in place and the upper unit has a tenant in place with a 1 year lease. The monthly expenses are about $200 per month including tax and utilities. I have access to cash, but I would rather purchase with a loan; but, I could use cash for a down payment to bypass the PMI. I was thinking about an additional $110 per month for property management and $200 per month to bank for maintenance costs. Even with another 10% per month for vacancy, it would still cash flow.
Any thoughts or opinions about the deal or recommendations regarding financing. I appreciate any feedback!
The listing description is below...
EXCELLENT INVESTMENT OPPORTUNITY!!! Duplex with 2-bedroom, 1-bath units. Downstairs unit rent is $600/month. Upstairs unit rent is $500/month. $1,100/month income, $196/month expenses includes taxes, insurance, water, trash. Two-year lease in place on downstairs unit, and one-year lease in place on upstairs unit. Both units have been updated with new kitchen cabinets, counters, and wood floors. New paint. Separate water, electric, and gas meters for each unit (owner pays water and trash). Updated wiring in kitchens and baths of both units. Kitchen appliances stay. Washer/dryer hookups in each unit. Washer/dryer in upper unit stay.
