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Potential Rental Property Purchase

January 27th, 2014 at 02:32 pm

Not much to report.

Husband & I are going to look at a duplex for sale tomorrow. Its been on the market before at a time when we were not in a position to buy it. We always kind of kicked ourselves for not pursuing it. So when it came up again we jumped at it.

It's located 2 blocks from where we live. Very good location. Small lot size. Overall lots of neglect on the outside. Everything is nearing the end of its lifespan.

It is 700 sq ft 2 bd/ 1 bath in each unit. It brings in $1100 month when both units are rented. It's fully rented right now. Listed for $80k.

We were thinking that if we made repairs/upgrades, we could get it to bring in $1600/month.

So it'll depend on what the inside looks like. We are expecting it to be in need of updates.

Since it is rented right now- all upgrades can wait and we can recoup some money waiting for leases to finish up.

So we'll see how everything plays out. This would be our last rental purchase, using the last of the liquid money we have. So it needs to be a good one.

We'll see!

2 Responses to “Potential Rental Property Purchase”

  1. Rachael777 Says:

    Excited for you! how fun,. What is the possible loan payment, taxes, costs, repair allowance etc.. what would your net be per month? or can you pay cash?

  2. TashaC. Says:

    We will pay cash. Because neither of us is working and our rentals take a loss "on paper" every year- we don't qualify for any mortgages or HELOCs.

    I need to call and find out the insurance cost on the property. But I assume it will be between $150-$200 month. That will include flood insurance. This building sits on the ground- no crawl space. So we want to get the extra flood insurance just in case.

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