Posted by James Strange on October 20, 2003 at 21:36:47:
How will you get it appraised as a duplex when it has four units?
80/20 Duplex - Posted by Felix
Posted by Felix on October 20, 2003 at 18:57:26:
I’m looking at a Duplex with 4 units, (2) 2 bedroom units, (1) 1 bedroom unit, and (1) studio unit. Their asking 274,900. I offered 274,900 with 9000 toward closing costs, and I’m using an 80/20 loan to buy the property, so no cash out of my pockect, but I’m figuring 2300 a month mortgage.
The place earned 43,000 income last year, with 9000 expenses. I’m figuring about 500 a month in positive cash flow.
Is this a good deal? Very new to real-estate.
Re: 80/20 Duplex - Posted by Jya-Ning
Posted by Jya-Ning on October 23, 2003 at 13:34:46:
The number looks good in paper. Assume 8% is the overall rate for both 20% and 80%. However, the expense side look low. Assume the 43,000 income is 100% occupied all year. You may need about 35% of income in the expense side. If that is the case, you may close to even. If 43,000 income is not 100% occupied, the expense side may be o.k.
Re: 80/20 Duplex - Posted by James Strange
Posted by James Strange on October 20, 2003 at 19:47:40:
A duplex has two units.
A fourplex has four units.
Have you beed approved for a loan or are you using blue sky numbers to figure your cash flow? If you can get this loan 100% on a fourplex is very hard to get. The rate will be high.
Re: 80/20 Duplex - Posted by Felix
Posted by Felix on October 20, 2003 at 21:19:40:
Yes, been preapproved, at 8%, it’s a Duplex, but has 4 units. Not zoned for 4 units, but hasn’t had any problems with rental license.