First duplex purchase - Posted by David


#1

Posted by Tim (Atlanta) on January 26, 1999 at 10:09:36:

Since this is your first deal, I would recommend buying one or two of these duplexes. After about six months or a year when you are more comfortable with the situation, go back and see if you can deal on the other ones. You will need some time to find out if you can deal with the headaches of landlording. Some people are just not able to cope with the problems.

Hope this helps.


#2

First duplex purchase - Posted by David

Posted by David on January 25, 1999 at 14:31:19:

My realtor brought me information on 2 duplexes. The seller wants $68,500 for each. Each side rents out for $400/month. I think a little low for the market. Should I expect a lower price for buying them both and if so, how much lower do you guys think?
Thanks


#3

Re: First duplex purchase - Posted by Tim (Atlanta)

Posted by Tim (Atlanta) on January 25, 1999 at 14:57:09:

First, your realtor needs to pull the sales of duplexes similar to these in those areas. This will give you a better idea about how much the property is really worth.

Next, what are the financing arrangements for this deal ? Is the seller willing to finance all of the purchase, part of it, or none of it ? The financing on a deal is very important.

One thing I have done in the past with multi-property deals is this : Find conventional (bank) financing for one of the properties and get the seller to finance the other property. This gives the seller some cash to payoff the existing loans, and you only have to come up with the down payment and closing costs for one of the properties instead of both. I would still prefer all owner financing, if you can do it.

Lastly, you should make a significantly discounted offer on these properties for taking both. Remember, the seller would be very happy to get rid of these properties all at once instead of having to deal with two separate buyers.

Remember, do your homework before making any offers.

Good Luck !


#4

Re: First duplex purchase - Posted by David

Posted by David on January 25, 1999 at 15:07:14:

Thanks Tim, The realtor just called and said the same seller has 2 more duplexes, same price, a quadplex and an older house that has been converted to a duplex same price. Should I just try to deal with one being a newbie or should I just dive right in and try them all? They are all currently rented?
Thanks in advance