Posted by James Strange on December 21, 2002 at 18:59:26:
100% on duplexs is possible but the one problem might be the office. The office make this into a mixed use property. Perhaps someone with more knowledge can help out with this.
Duplex - Posted by shawn lafferty
Posted by shawn lafferty on December 21, 2002 at 17:07:28:
My friend and I have been doing the reading, we have been doing the research, we are very ambitious, and now there is a property in our neighborhood, which we grew up in our whole lives, so we know the area and the market. The house, is a duplex, with an office as well on the one unit. The house is renting at 900 for the two bedroom unit and 450 for the small one, with the house selling for 125k we hope to offer 115-120k with the mort being somewhere around 800.00/mo. Does this sound like a good deal from the little i have mentioned? Could we get 100% financing? Any help would be huge. I know everyone says you have to just do it, don’t wait for ever, we are ready.
shawn lafferty
Re: Duplex - Posted by Henry
Posted by Henry on December 22, 2002 at 19:48:45:
Sounds interesting. You may know this stuff from your readings, but I would make a lower offer, assuming that you might end up paying 10% less than asking price. Have you done comps on the property? What condition? Sale contingent on P & F report. I frequently leverage the selling price down if the asking price is near market and the P & F is high. I figure a multiple of 1.4 on the monthly mortgage payment. That is, multiply monthly payment by 1.4 to get PITI, principle, interest, taxes, insurance, and ? If your figures are correct, you should have a positive cash flow. Are rents at or below market? There might be some room for more flow there, too. How many days on market? If it’s been on the market a while, why, is something wrong? Do your due diligence. Have fun, good luck!