Working on first deal

Working on first deal

Am working on a deal and wanted to get some advice.
I found a duplex asking price is $429k the owner needs cash because he
is sick and needs to move. He is willing to carry finance for $229k @ 6% but needs
$200k in cash. I have good credit and good job for over 14 years.
He told me that the property has been a family house for the past 17 yr. but was
converted back to a duplex. He also said that the property needs very little work and has
been remolded (kitchen new appliance). It's a 2/1 upstairs and studio downstairs.
I asked him what he thinks they would rent for and he said the 2/1 $1100 and the
studio $700. The property is a a nice part of town and there are homes mixed with duplex and a few apartments. I grew up in the part of town as a child an know it very well. I drove around
and found a studio with 3/4 loft up the street for rent for $1350. Also I found an apartment 2/1 renting for $1450. So I think he may be off on the rental price. My question is at what price should the property sell at if I can rent the studio for $1000 and the 2/1 for $1500. I have posted about this on other parts of the forums. Am new to the site and to investing, so any advice would be great. Thanks in advance.


"God gives us gifts, warped up in problems"

you need a little more info.

Hi Vivanco.
You'll need to know how much the taxes and insurance are on the property, as well. Then you can determine how much your monthly payments would be using the calculator found in the Student Resources found at the left of the page.

Once you have that, you can figure out what sales price the rent of $2500 could support.

Hope that helps. Smiling



"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link:


Vivanco do not forget to consult a local realtor for nearby comps and run the number with PMI, Insurance, taxes, etc, included so you will know what you potential monthly cashflow is. THEN determine what you are prepared to offer him.


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