Okay, my first post ever on dg.com and it's about my first potential deal. I feel like I can use the calculators to figure out if it's a good deal but wanted to pick some brains on the sight.
Here's the situation:
It's a duplex in Philadelphia, where I live that is being sold by a guy who is selling all of his investment properties in Philly to move to Georgia. He's asking $189,000 for the duplex but his realtor said he was authorized to tell me that he sold one for same guy across the street for $170,000. Therefore, I'm assuming I could get it for at least $170,000. He said sale price would include a 6% seller assist to pay all closing costs.
Each unit is two bedroom, one full bath. He's kept them in great shape. He's getting $770 from each tenant and they pay all utilities. One strange thing: He doesn't have refrigerators in the units, he says it's the tenant's responsibility. He said that he feels that tentants take better care of property if they own something there?? Seems a bit strange and could be a turnoff to prosepective tenants but he said he's never had problems renting it out.
Anyway, he said that insurance is $900/year and taxes are $1700/year. My credit is very good and I was gonna put down 5%.
Does this seem like a good deal? R there other numbers you need to help me calculate this? It seems like a good investment to get a bit of cash flow and build some equity as my first property? I'm skeptical b/c the realtor showing it said he owns his own properties and if it's such a good deal, why isn't he buying it?
Any input is greatly appreciated...