livingalmostlarge
Recycles dryer sheets
- Joined
- Feb 8, 2014
- Messages
- 330
Okay here are some details of an investment I'm considering. It fell into my lap today.
$350k to purchase the duplex from coworker. She's divesting herself of all her properties slowly and already sold in 2017 $1.8 in a 4 plexes. She is keeping 2 more duplexs and a couple more homes elsewhere. She's 69 and decided it's time to slowly divest herself 1 per year.
Rents are $1350 and $1500 for each side. She's owned it for 13 years. The roof is 4 years old and I am not sure how old but water heaters and stuff are relatively newer.
Depreciation she's been calculating about $5k/year. It's been cash flow positive for her for years but she bought for $300k at the peak of the last market.
Is this something I could consider? The numbers appear to work well enough for the risk.
She advised me a four plex is what they teach, 2 units for the mortgage and 2 units for buffer. But I am not sure if I have it in me to find a 4 plex. This however could work.
Running the numbers in BP it says 6.68% cap rate on return and 8.59% cash on cash ROI. I like the idea of diversifying our portfolio.
Thoughts?
$350k to purchase the duplex from coworker. She's divesting herself of all her properties slowly and already sold in 2017 $1.8 in a 4 plexes. She is keeping 2 more duplexs and a couple more homes elsewhere. She's 69 and decided it's time to slowly divest herself 1 per year.
Rents are $1350 and $1500 for each side. She's owned it for 13 years. The roof is 4 years old and I am not sure how old but water heaters and stuff are relatively newer.
Depreciation she's been calculating about $5k/year. It's been cash flow positive for her for years but she bought for $300k at the peak of the last market.
Is this something I could consider? The numbers appear to work well enough for the risk.
She advised me a four plex is what they teach, 2 units for the mortgage and 2 units for buffer. But I am not sure if I have it in me to find a 4 plex. This however could work.
Running the numbers in BP it says 6.68% cap rate on return and 8.59% cash on cash ROI. I like the idea of diversifying our portfolio.
Thoughts?