I need help with this duplex! (long) - Posted by Carey_PA
Posted by Carey_PA on November 07, 2000 at 20:09:45:
I called on an ad where a guy was offering no money down on a duplex, possibly a triplex.
Here’s the info I got thus far:
He wants 218K because that’s how much he would need to pay off the remaining mortgage and to pay the 1% transfer tax on he and his ex-wife. (1% each)
He said the place could easily get appriased for 240k-260k. He said if i wanted to make it a no money down deal, he would write up the offer for the 240-260k price and get an appraisal on that, but then at closing only get 218k and then i would use the remainder of the money to pay closing costs and to put in my pocket or to put some money into the building. Now, I’m new to this type of deal so that sounds a little fishy to me! But hey what do i know, that’s why I come here for you all to SAVE ME!
Here’s some more info:
top apartment 3br/1ba. rents for $900/mo
bottom apart. 3br/2ba. rents for $850/mo
THere’s a total number of 2 acres with the duplex.
He also rents out 1 acre to a landscaper for $500/mo (not during the months of nov.-april though)
Total sq. footage is around 4500 sq. ft.
He said his 1st mortgage is around $1380
and his 2nd mortgage is around $200 something…the total comes to just about $1600.
He says he pays $45/mo in electricity
there is onsite sewer and water so he said he doesn’t pay anything for that (although her replaced the water pump in the spring)
He pays roughly $2200/yr in taxes
and around $1200/yr in insurance
HE also said there is NO license or anything needed to rent in the area, but i don’t believe that! I think there is one needed and it’s fairly inexpensive.
He told me he just about breaks even. BUT here is the kicker, where I think this place has potential although keep in mind I’m new to this type of deal.
#1 I believe he doesn’t charge enough in rent. The rents in that area could easily get AT LEAST $1,000. (he told me the landlord before him rented the top floor out for $1400/mo, but had 6 college guys living there)
#2 The place use to be a triplex. But now the 3rd potential apartment is being used for tenant storage and his storage. He said it needs to have some work put into it to make it an apartment again. (this would have 2 huge bedrooms)
THe homes right down from this duplex are valued at $450k and the neighoborhood is fairly ritzy if ya know what i mean…and it’s right near the college. There is also a new golf course being built down the road from the place.
He says an acre of land in this area could go for $110k-$115k BUT remember that’s HIM saying it…I went on loopnet just to see and i did find .30 acres in the nearby area for sale for $110k but it was zoned C-2. (i don’t know if that means anything)
HE TOLD ME THAT HE’S not looking to make any money out of this deal, he just wants to get rid of it. He’s relocating because of a job and he just got divorced. HE said he’d even show me his loan papers that he has to prove that the mortgage payments he has are real…
So, what does everyone think? I’m going to look at the place on Saturday morning…