Feb
16
Potential Duplex Rental Investment
February 16, 2007 |
I really need to stay away from the MLS listings, as I keep finding potentially profitable deals.
A foreclosure listing popped up yesterday for a 1700 sq. ft. duplex, listed at $49,900. It’s in a slightly sketchy part of town and it needs some work, but it’d pretty easily rent for $800-$850/month for both sides.
I’d probably need to sink at least $10K in repairs into it, though, as nearly all of the windows and doors need to be replaced, the exterior needs new siding in places, the carpets need to be replaced, along with assorted other repairs. The furnaces visually looked pretty old and beat to hell, too. And there’s the small issue of, umm, currently being in the midst of buying another investment property.
On top of all that, I’m still not exactly settled in my head as far as the whole landlord gig, especially with properties in less-than-stellar neighborhoods. Technically we’re in the landlord business now with the Austin rental house, but my brother-in-law is renting it, which isn’t quite the same. (Although with how damn picky he is about everything sometimes I think it’d be easier to have complete strangers as tenants.)
I could simply turn it over to a property management company, though, as there should still be some room for net monthly profit given the rock-bottom foreclosure price. And I do want to eventually pick up some rental properties, as I like the chances of some decent appreciation in the area over the next five years, which I’m largely losing out on with straight-up flips. The timing just isn’t that great, though, as far as trying to juggle two purchases simultaneously.
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[…] although I haven’t seen the inside yet. It was owned by the same previous owner that had this duplex I’ve been eyeing for months now, but it looks to be in better […]