I am looking at buying a duplex near me for $375,000, asking price, and its inline with past solds. The only active comp is $369k and 4 have sold in the last year for 2x @ $325k 15 months ago, 1x @ $340k, an 1x @ $359.9k, so her pricing is reasonable & she is selling as is, with no improvements and it most likely will be FSBO.
We would live in one side and keep the long term tennant on the other side. She has done a lot of improvements, flooring, cabinets, paint, foundation, etc. one is 3/2 and the other is 4/2. So there should not be much work needed at this time, pending an inspection. I can rent a 3/2 now for $1500 or so, as I am paying $1450 for a similar 1/2 of a duplex and maybe $1650 or $1700 for the 4 bedroom.
I am seeing with 5% loan & with my VA of nothing down, its only $2k a month? That would be incredible, and while I would apply for homestead on taxes, I see when i move out taxes are a whopping $9150 a year. Or $762 a month just in taxes!
So if I look to then rent it out after I move out i would still have the $2k payments & if I bring in $3,100 or so in rents, i only get a paltry $338 in cash flow after taxes and before insurance, which should be in the $75 or so price, so I am left with approx $270 in cash flow, and if it need a big expense within a year, say for a roof, I am not making anything.
Is this a thumbs up or thumbs down???