Ok so here are the numbers on a duplex that I am looking at possibly purchasing and renting out.
Each side is a 3/1 with approx. 1100 sq. ft.
It brings in $14,400 annually.
The asking price is 65K, but I think I can get it for a lot less.
The numbers give a 26% cap rate which is very good.
I understand that I havent factored in maintenance, etc. but at 26%, it still seems like a great deal regardless.
The only drawback is that it isnt in the greatest of neighborhoods. The city has been making strides in upgrading the neighborhoods and infrastructure however.
From outside pics, it looks to be one of the nicest properties in the neighborhood, but I plan on driving by it tonight.
According to the auditors website, the last appraisal was approx. 77K.
It is already occupied so I wouldnt have to find new tenants unless I really wanted to.
But now here comes the hard part, financing! I dont have 10-15K sitting in my account for a down payment so I would need to use the equity in my current home or go a different route for payment.
I would greatly appreciate any comments or suggestions from anyone in the DG family!!!!!
Thanks so much!!!!