Posted by Briton (IN) on September 09, 2003 at 09:38:20:
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Duplex - Posted by Briton (IN)
Posted by Briton (IN) on September 08, 2003 at 14:49:05:
I am looking at a duplex that has two little one BR apartments in it. It is about the size of a small ranch home. It has a VERY old garage, that may be next to useless. It is in town (average area). I think i could easily put another 7-8k into it in repairs. The asking price is 55k. I would only pay 45 prolly, and would put 10 down. With a morgage of only 35k, the payments would only be like 300$ a month. I think i could get about 600$ a month in rents. This leaves 300$ a month for other cost, and income. This seems like a sure bet. I know you do not know many details, but what do people who have tried small duplexes like this think of them? Any suggestions? I currently spent all my time in MH’s and the MH board. Please advise, thank you, Briton (IN)
Re: Duplex - Posted by Jay(OR)
Posted by Jay(OR) on September 09, 2003 at 01:52:52:
Well, with $300 per month in principal and interest, it’ll “prolly” take approx. $100 to cover taxes and insurance. So, there’s $400 gone. Other expenses- vacancy, utilities, management, etc. will also eat at your income. So, best case scenario, you’re bringing in $200 per month cash flow. That’s not too bad, but considering it may take up to $18,000 out of your pocket, I’d have a hard time justifying this duplex. Well, I doubt this is what you wanted to hear, but good luck with it. By the way, I have a $58,000 mortgage that only costs $456/mo. PITI, so your figures may be a bit high at $300 per month at $35K. At 7%, the payment would only be $232. Maybe you could get in close to nothing down? Well, good luck my friend
Re: Duplex - Posted by Frank
Posted by Frank on September 09, 2003 at 07:28:36:
I agree with Jay. Not much return on 18k out of pocket. Do you have another option for financing that wouldn’t take as much o-o-p? You are about right on the payment. I just bought two lots with a sfh on one and the other vacant. I financed $36.5k as a second mortgage and the payment is $308. I wouldn’t do that deal with those numbers but I think the type of property is a slam dunk.
I am like perfection… - Posted by Briton (IN)
Posted by Briton (IN) on September 09, 2003 at 09:36:45:
The 8k i stated was to get it really looking nice, ect. I think this could be something i would spend over the course of a few years. I would not “need” to spend it. As for how much i put down, i could do less, But with 10k my bank would prolly give me 5% interest, which is great in my eyes. I could get the payment down to like 250 mo. Do you guys like to do these with longer terms? I was thinking more like 15, but a 25 could get my payments down to around 200! Which road do you recommend and why? So at say 12k out of pocket, then make a few improvements with my profit down the road sound better? I think i like this 200$ payment thing. Sorry for all the questions, i just love hearing everyones point of view! thanx, Briton (IN)
Re: I am like perfection… - Posted by Frank
Posted by Frank on September 09, 2003 at 10:11:46:
I like the way you put the subject originally. My note is 15 years at 5.99% I bought this place with credit cards and payed them off with the home equity loan. I have maybe $500 out of pocket. I was able to cut the taxes in half by paying with CCs (cash) and getting hte seller to fudge the selling price of the place to the current assessed value. At $550/mo and the payment at $308 I am pulling in around 200 per mo with very little $ spent. I like the 15 year b/c you build equity faster. But you can also go longer and add more if you feel like it but I always like to make myself pound it away at the 15 year level. Also, you have to KNOW what the taxes and insurance are. Don’t let ANYONE tell you.