Sold $550,000 - Duplex
When I find a property where important information is withheld (that virtually no one else is aware of) which impacts its value, I have the opportunity to bring an excellent deal to my clients. And, with this property, we have just such a circumstance. So, what is it that I am aware of that few, if any others, are not?
1) I know the seller will likely accept a price of $550K even though it is on the market for $599K.
2) I know there is a very good likelihood that the low-rent tenant in the 3/2 can be re-located with a fee, and that the unit, without too much work, can fetch more than double what it is currently getting (i.e., about $3250 instead of $1500).
3) I also know that the vacant 1-bedroom, again, with very little work, can fetch about $1700/mo.
So, with you paying $550K and spending another $50K for renovations, plus $10K of re-lo fee, for a total of $610K, you will have a duplex that is grossing $4950/mo, or $59,400 per annum. That means a positive cash flow of $1750/mo or $21,000 per year, or a cash-on-cash return of approximately 11%, in a very upside location.
OK, there you go. If you want to pursue this one, or just get more info on it, contact me anytime.
Best, Ken
