Author Topic: Should I buy it?  (Read 805 times)

en58

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Should I buy it?
« on: June 02, 2017, 02:44:31 PM »
Guys, I need advice.

I'm currently living in a duplex, I rent one and another person rents the other. Just got a call from a real estate agent that the landlord is selling the duplex for 105K. Both places are small and rent is 750 for each place. As long as I have lived here there has been no major issues. Should I buy it? Is it worth it? And how is it living next to your tenant? 

waltworks

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Re: Should I buy it?
« Reply #1 on: June 02, 2017, 05:53:51 PM »
If you like living there and plan to stay long term, I'd do it. Only difference being your neighbor's landlord is that you can pick your neighbor!

-W

SwordGuy

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Re: Should I buy it?
« Reply #2 on: June 02, 2017, 09:16:37 PM »
How long before the water heater, the hvac, the stoves and fridges, and the roof fail?

That  will impact your short term costs.  (Long term, the rent has to cover those costs.  Short term, with a used property, they could break at any time.)

How much down?  At what interest rate?  Can the owner finance it or do you need to go to a bank?

What are the taxes?  Insurance?  Other costs?  Principal and interest if you don't pay cash?

After you subtract that from the gross rent, and another % for vacancy reserve, property management, and general repairs, how much will you be making a year?

Are you better off or worse off on your cash flow compared to your current position?