Could you guys please help me decide if this deal would be a wise investment? I am looking to owner-occupy, but I also want it to cash flow nicely if/when I decide to move out.
Property: Duplex
Year Built: 2004
Sq. Ft.: 2,568
Asking Price: $225,000
Gross Income: $25,920
P&I at 3.78% Interest: $837/month
Estimated Property tax and insurance: $346
I am going to look at the property tomorrow with the realtor, but I would like to prepare myself as much as possible. Would this property be something you would pursue? Any advice you can give me regarding this property (i.e. questions I should ask, information I should get, etc.)?
Thanks a lot.
InvestorKC
It would be difficult to assess with not knowing more information, however, it looks like you want to occupy one side and rent other side. If so, and if the rents were equal on both sides, your numbers would say that renting out half would pay the entire mortgage obligation.
That would be a good investment if you wanted to do the above and those numbers were accurate.
Another alternative would be to rent both sides and profit the difference, about $12k / year or just pay down mortgage early and have permanent income from that property; then repeat often.
If you have more specific questions, put them on this forum and you will get plenty of opinions.
Hope this helps.
Rob
Thank you, Rob. You are correct, I do want to live in one side and rent out the other, at least for now. If I were to rent out both sides, assuming the above numbers are all accurate, what would you put your amount of expected cash flow at each month? know a lot of people here use the 50% rule, so $2,160 (monthly income) /2 (50%) - $837 (P&I) = $243.
I’m just trying to do a profit analysis and get as close as I can here.
Thanks.