Today's property is a little more off balance than I would normally pick when it comes to a duplex because one of the units has 3 bedrooms whereas the other only has 1 bedroom. That said it makes the analysis slightly off and not so ordinary because as the suggested value from this blog is based on the safe price, meaning if all units are 100 percent occupied at the lowest rent well in the case with one being a 3 bedroom and another being only a single bedroom that of course means the entire property will be based off of the lower rents and therefore will be a more stable acquisition yet a little harder to convince the seller of your value.
The simple breakdown is the property is currently being marketed for $139,000 with the larger of the 2 units being rented for $850 per month and the smaller for $675, according to the listing firm they are both long term stable tenants. So the current Tim Taggett Value is at $129,625 with the current rent rolls and an safe value of $114,750. If acquired at the value of $115,000 and putting an initial investment of 20% (like I usually suggest) this property should cash-flow around $580 per month including paying a management company to handle any headaches at 3am.
(12160670)
Any questions or would like to discuss investment property give me a call directly 760-500-7292 or an email at RetireEarly@gmail.com.
Thanks for reading and Happy Investing!
Tim Taggett
DRE# 01468188
REI Powerhouse
Darryl Self, Broker
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