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AW: Closed on a duplex yesterday
As some of you might be aware, I've been under contract for a duplex that I will be using for rental income. It finally closed yesterday! One unit is a 2 BD/1 BA and the other unit is a 4 BD/2 BA. On the good side, I got the house cheap. On the bad side, that is because it needs work.
I'm like, "Yeah, closing! 
." Ugh, now the real work starts 
, lol. Here are the details:
Purchase price: $48,000, plus $15,500 added to the loan for some of the construction costs.
Estimated repairs: $25.000
All in: $73,000, appraised at $110K once repairs are completed.
Monthly Rent/Costs/Cashflow
Total rent: $1900-$2100
Mortgage, taxes, insurances: $730
Future vacancy: $150
Future repairs/maint. $200
Cashflow: $830-$1030
It's a little bit of a psychological shift. I've been renting half of the duplex I live in for the last four years. But this is my first "non owner occupied" property. It's like now I'm REALLY a real estate investor, lol.
I should have the larger unit ready in about one month and the smaller unit ready in two months. Long story short, a relative of the previous owner is living in the smaller unit, so I have to wait 30 days after I give him his notice to vacate before I can start on that one.
Lesson learned, I should have stipulated him moved out as being a condition of closing. But I didn't, so now I have to put up with him for 30 days. Though I am going to offer him a bit of money and two months of free storage if he will get out sooner. While I hope to not have to go this route, Louisiana at least has very landlord friendly tenant laws if he refuses to leave after 30 days.
Re: AW: Closed on a duplex yesterday
Thanks! That's a good idea about the pics. It is a bit of a horror right now, lol. Two rooms only have sub flooring. One kitchen has no cabinets or sink.
The other kitchen randomly has a full sized Pac Man arcade game in it. A full sized Pac Man arcade game...in the kitchen. I cannot make this stuff up, lol.
You may want to check out local facebook swap sites for cabinets, it sounds weird but my mom was able to get a full set of cabinets for their rental unit for free! Obviously not all of them fit, but it was a huge cost savings. The cabinets are solid wood and in fantastic shape but the people were remodeling the kitchen and didn't want them to go to waste.
Congrats on the purchase!
Edited because I can't spell cabinets properly apparently.
Pac Man might help you de-stress
Thanks everyone!
@abrewer5, thanks for the tip! I have to admit I've never looked much into Facebook for that kind of stuff, but it wouldn't hurt to check it out. I wouldn't mind paying something, I'd have to at a Big Box store anyway, so Craig's List might be another option. The cabinets will go against just a flat, straight wall, so there really isn't much to them as far as sizing. Anything I can do to trim that budget without costing time!
@csuave, I wish the game worked, lol. I guess I actually don't know yet because I need to get the electricity turned on, but it's a pretty old and decrepit looking machine. I'm betting dollars to doughnuts it no longer works.