Sold $475,000 - Duplex
If there isn’t a ridiculous bidding war driving the price up, this will be a great deal for someone. Here’s how it goes:
Pay $400K, all cash or with a hard-money loan, spend $100K to get it in shape, and end up with two 2 bed, 1 bath 950 sq ft units that will rent for $2500 a piece ($5000 total.) Once you have it fixed up and rented, get an equity line that enables you to retrieve most of your cash (or pay off the hard-money loan, as the case may be) and you now have a duplex that cash flows quite nicely. If you end up with $100,000 of your own cash in (quite realistic), then you are at $1900/mo positive cash flow, or $23,000 per year. This means you are making 23% cash on cash return!!
Hell, even if you have to go up to mid to high $400s on this to win the bid, it’s still a great deal! Let me know if you want to pursue and I’ll be happy to help you out.
Best, Ken
