For a duplex, IF utilities are cleanly split, I look for more like a 1.1 to 1.15% MROI since they don't have the market gain potential and are usually sold to another investor.

Interior Paint, floors, hvac system and roof all redone with in the last 6 months.

Tenants in one unit are great people and clean but are paying under market value.

Lets take a quick look at the numbers on the house hack duplex:Purchase price: $160,000Renovation budget: $21,000ARV: $215,000 Rents: First floor: $1,250 before being fixed up, but i am occupying and its already fixed up.Second floor: $850Three garage bays: $95/each Total expenses after re-fi (PITI): $1,815 (NJ taxes are unreal!)

Once I have the tenants out--they'll be out Sept 1, our plan is make the top 2 floors a 5 bed 2 bath unit-- should rent for $2,500/mo.

Would require new interior paint, exterior cleaning, flooring to replace carpet (when home is vacant)From the surface this looks like a good deal but I am only starting to learn about this market.

it's a distressed property so of course there are some things wrong.it's freddie mac REO, way past the owner occupant period which ended in january 2018. it was originally listed at 50k dec 2017. went under contract in july at 42k, now it came back at 38k. but looking on redfin it was on and off the market since 2012.its in a neighborhood where houses are selling between 70k - 135k. in fact the 135k looks just like this one and its on the same street. on the inside it's pretty nice, seems like just paint and flooring. might need new mechanicals etc and some mold in basement. so as a newbie i'm thinking, what am i missing?

The unit is located on the first floor with 2 exits into thebuilding interior hallway and 1 exit directly to the outside.

Ok the scenario.Recently closed on an investment townhome with a nicely landscaped back patio.......a small but clean little trek deck and some nice pavers that created an attractive useable space.

The benefits of commercial loans are that you essentially wipe the slate clean with a blanket loan for your existing portfolio and can using Fannie/Freddie for your next properties.