I can get my hands on a duplex for $4k cash. Bank owned, outside perfect except for lawn. Needs only cosmetics and furnace inside. Units in the area are renting for $550-675 monthly. Low income area so I could section 8 it. What do you think?
I think you’re wasting time posting the question when you should be handing over the money. :biggrin
Seriously, sounds like a great deal. Congrats.
It depends on what you mean by “cosmetics and a furnace”. Let’s say this equals $8k
Assuming $1100 Gross Rent
Expected Expenses $550/$550 NOI
$6600 month net on a $12k investment is d**n good :shocked.
Of course, you need to make sure of the costs, especially what it will take to make the property Section 8 eligible. If the costs to repair are reasonable, then you have a home run. If they are not… :crying2
Why the hell aren’t you getting a contract signed?
Where are you located?
What are other duplexes selling for on the market?
What is your market condition like?
It’s not one of those little kid houses that come in a kit and you put it up in the back yard, is it? :biggrin Seriously, this sounds decent. You can Section 8 it if it passes their inspection. My spidey sense is telling me there may be something about the property that may cost you. Or maybe I’m just jealous!!I hope it works out for you. :beer
the only thing slowing me down is I have no cash what so ever and my credit is like 620. Any ideas?
If you have absolutely no cash and relatively bad credit, you definitely should NOT be buying a rental. That’s a recipe for disaster. What you need to do is work harder and build up some cash while fixing your credit. Once you’ve done that, then think about investing in real estate.
Good Luck,
Mike
With no cash and no credit, you have no business holding rental property. Holding rental property costs money. Wait until you have a healthy cash reserve before you become a landlord.
Because this property is bank owned, the bank will want to see proof of funds before they will sell you the property. Can you get a cash advance on your credit card? Will a family member with cash partner with you on the deal for a share of the profits?
If you can get the cash to purchase, then flip this property to a cash investor for $8K. Get your buyer lined up before you buy from the bank.
All that glitters is not gold, sometimes it’s just manure with dew on it. :biggrin
With that being said:
“I can get my hands on a duplex for $4k cash.”
Are you saying you can buy this duplex outright for 4k plus some minor repairs? What is it’s market value? If that is the case, and you don’t have any $ find a partner and do an equity share. Have the partner provide the funds for his share. You do the repairs and be the deamaker for your share.