Long time lurker, first time poster.
I am considering a property that has two duplexes on it. It looks okay to me, but I have never bought this type of property before so I need some advice. Here are the details:
The property is in a fairly stable area about 8 miles south of a town with a population
over 80K and a major university.Property is on a main road that leads directly into town.
Unit 1&2 rent for $515
Unit 3&4 rent for $525
When where the rents last raised? Long ago. Current tenants have never had rent raised.
Leases:
Unit 3: One year; expires August 31, 2017
Unit 4: (did not scan; at home; will send this evening; pretty sure 1 yr lease ending summer/fall 2017.)
Unit 5: 6 month, expires June 30, 2017 (just renewed)
Unit 6: 6 month; expires May 31, 2017
All rented.
Asking price $135K
2016 (est)
Repairs: $1,100
Improvements: $1500
Rental income: $18,000
Annual recurring expenses
Water $840
Trash $912
Snow/Lawn $750
Property Tax $2,700
Insurance $2,100
Rent (@ 100% occupancy)
Units 1 and 2: $12,360
($515*12)*2
Units 3 and 4: $12,600
($525*12)*2
Total rental income at 100%: $24,960
Improvements to units 3 and 4
Roof 4 yrs old
New toilets
Hot water heaters 4 yrs old
Foundation drain installed both units 3 yrs ago; warrantied for life; transferable
New rugs; walls painted
Improvements to units 2
Foundation drain installed unit 3 summer 2016; warrantied for life; transferable
New carpets and paint
Improvements to units 1 and 2
New roof scheduled for mid-January.
I would appreciate any thoughts.
Bill
