I have an opportunity to purchase this property. Is it a good deal???
It is a duplex that has rental income of $935/month. The owner pays utilities that average $220/month. Taxes for the 07 taxes are $1144. With 95% occupancy rate since 2001. Price $69,900
Here is some more information I received from the realtor.
- Yes, both units are occupied
- Both have been there 5-6 monthes
- I have met with both tenants, they both work at Rapid City Regional, and both seem more than willing to stay.
- Based on 95% occupancy rate, $2640/yr for utilities, $1144 taxes, and $1200 misc expenses, the cap rate is .093%
- Divorce (out of town owners ), and neither party can or wants to buy the other out.
It is located on the main road out of town with 500+ vehicles per hour passing it so my thought was to rent it and maybe purchase more of the surrounding homes and turn it into a commercial area after awhile. This section of homes in this area are the only residential left. Everything else is commercial.