Looking at a duplex. Both units rent for $1,050/month, and tenants pay all utilities, including water, sewer, trash, and yard maintenance. The units were recently updated, and each has its own new natural gas heater, plus separate gas and electric meters.
Purchase Price: $239,000
Rent: $2,100 ($1,050 x 2)
Tenants pay heat, electric, water/sewer, trash, yard maintenance
Annual Expenses (Taxes, Insurance, Mgmt): $6,045
(Property Taxes $2,125, Insurance $1,400, Property Management (10%) $2,520)
NOI: $19,155
Cash Flow (20% down @ 7%): ~$319/month
I'm calculating an ~8% cap and hands-off management structure. Getting a full inspection done as the building was built in 1906 but looks very well maintained. Any specific questions I should be asking?
Putting offer on first property. Anything I'm missing?
byu/DLHEBT inrealestateinvesting
Posted by DLHEBT