Hey there, so here’s the lowdown on the property I’m eyeing up in Ohio. It’s an older duplex with three bedrooms and one bath in each unit, currently bringing in $1,900 in rent from long-term tenants. The seller is someone I know, and we’ve agreed on a purchase price of $145,000. Good news – the place appraised for $185,000! I’m putting down 20%, and the only hiccup is the knob and tube wiring, which is gonna make insurance a bit pricey at around $2,100-3,000 a year. Property taxes are about $2,000 annually.
Now, here’s the math on this investment – after all expenses and allowances for maintenance, vacancy, and capital expenditures, I’m looking at a monthly cashflow of around $400-500. Not too shabby, right? Plus, major updates like the electrical panels, roof, electrical service, plumbing, furnace, and boilers have all been done in the last couple of years. The property is in solid shape, just needs a few cosmetic touch-ups.
But here’s the kicker – I’m a first-time investor, and I don’t have a mentor or anyone local to bounce ideas off. So, I’m turning to you guys for some advice. Do you think this duplex deal sounds like a winner for a newbie like me who’s in it for the long haul, or should I steer clear? I’m all ears for any feedback or tips you can throw my way!