Duplex on a corner lot, building is in great shape and 10 years old.
Tenants both have 2 years left on their leases, total rents equal $1800 per month.
Taxes are $4900 per year.
Tenants pay utilities, owner pays lawn care (about $1000 per year.)
Owner does not have it on the market, wants 250,000 for it.
Reason for selling: retired, starting to unload responsibilities.
Just based on what you have here, I wouldn’t…it’s overpriced and won’t cashflow.
Keith
Just to expand briefly:
$250K you’ll probably need to come up with 20% down ($50K) plus closing costs
P&I on $200K @ 6% = $1,200 per month
Taxes = $408 per month
That’s already over $1600 of your $1800 income and you haven’t accounted for insurance, maintenance, vacancies, advertising, etc.
Keith
I thought the same thing, of course it’s not worth 250. 
The question is: What would you offer?
any pics?
comps? etc? similar sales prices?
not really, not in this area.
In all reality, though - comps don’t matter unless they work in my favor. Since they don’t, I need to figure out what price to buy it at… What purchase price makes it a great investment, and why?
When I know that, I can pitch the guy on it and see if I can close the deal.
I can get rent like that for under 100k, but you’re looking at buying a much newer building than I have. Most sellers are not going to sell at a price point where the building will cash flow really well unless they’re desperate for some reason. I would personally want to get this for 100k or less, but I think there’s no way you’d get the seller under about 175 considering where he’s starting from. A high price usually means someone doesn’t want to sell, but if a sucker comes along they’ll cash out.
You can get $1800 per month rent on a purchase of 100k?
We buy houses that generate $500-650 monthly rent off around a $25k investment or less.
Low income rentals = more BS than normal + more cash flow than normal
That’s the formula…you just have to be willing to put up with all that comes with it.
So yes, I would be looking at anywhere from $2000 and up per month from a 100k investment.
When you put it like that… fair enough! Thanks for the feedback :beer