I’m about to close on my first deal so I guess I’m a little late in asking but I wanted some opinions. I purchased a 1/2 duplex for $98000.00. I had to put 10% down but I’ll have about $180 per month positive cash flow. My tenant is locked up until February 05. Is $180 per month decent or should I expect more? Thanks.
There are worse deals than the one you did and there are better. If you are in a high crime high turnover area you did worse and if a first class area you did better. The rate of appreciation is also a large facter. What about maintenance and reserve for replacement is that included in your cash flow projection or is it just PITI.
The down stroke is not too bad. Can you borrow that from the seller or a third person?
Good luck with it
Ron Starr has written that there are three reasons to invest in real estate for the long term.
Cash FlowAppreciation[*]Tax Benefits
If you are satisfied with your cash flow, and your investment property is likely to appreciate over your holding period, then just sit back and reap the tax benefits from holding investment property. Your tenants will pay for the property on your behalf, you get all the advantages of investment property ownership, and you alone benefit from the property appreciation and loan payoff with no more money out of your pocket.
How can you go wrong making a profit?