Need Help SBR: Looking to buy a duplex to rent out. Need Advice.

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  • downtown2222
    SBR High Roller
    • 02-17-09
    • 130

    #1
    Need Help SBR: Looking to buy a duplex to rent out. Need Advice.
    Ok guys, need some advice about possibly buying a duplex that is for sale.

    The duplex is 8k cash or best offer so Im thinking I can get him down to 7k. He has 2 seperate duplexes for sale...Both are pretty much identical. both for 8k OBO

    1 unit in duplex is: 2 bedroom, dining room, living room, kitchen, carpeted, full bath, washer and dryer hook-ups, basement, storage area

    2nd unit: 3 bedroom, living room, newer kitchen, full bath, washer and dryer hook-up, basemnet, storage area, also has a single garage under back of the house can be rented

    So I was thinking of offering him something for them both IF its decent.

    No major problems.

    Need some light work inside (paint, cosmetic work)

    Newer kitchens/bathrooms in both

    I havent seen the duplex yet but I am planning on going to look at them this weekend. The duplex is 1hr 15m away from me, but the drive doesn't bother me however I might need to find a handyman or something in the area of the duplex in case of emergencys tennants may have.

    Heres the kicker...Both duplexes are rented right now. They are bringing in about $825 in rent amonth each. Think he charges $425 and $400. Obviously I can change my prices but I wouldn't higher them coming in as a new landlord.


    This is my first time buying any type of property and I have no intentions of ever living here. I would be doing this as an investment.


    What do I need to know, it sounds like a deal to me...I know that it isn't going to be easy being a landlord but at the same time, I would be ready for the challenge. Basically after 10 months of renting, This would be +ev after....?

    The reason hes selling is he needs the cash to buy different property he found in a different county.
  • HotStreak
    SBR MVP
    • 05-12-09
    • 3235

    #2
    Why would anyone sell property that is bringing in 400 a month in rent for 8K?
    Comment
    • Waterstpub87
      SBR MVP
      • 09-09-09
      • 4102

      #3
      If you would receive inflows of 825$ a month and it costs 8000 to buy, buy it now. You can make your money back in ten months. Where are you buying houses for 8000, detroit?
      Comment
      • opie1988
        SBR Posting Legend
        • 09-12-10
        • 23429

        #4
        Sounds unbelievably low. Be sure to do your due diligence inspecting the entire property.

        To see a 10 month ROI on real estate seems almost too good to be true. You know how the rest I that saying goes.....

        Good luck. I think that rental property is a terrific investment. Probably as sound as there is in today's climate.
        Comment
        • ngates815
          SBR Posting Legend
          • 12-01-09
          • 13845

          #5
          It's story time at SBR!!!!!!

          Or

          The guy planted a bomb in the duplex and plans on killing all the renters.
          Comment
          • downtown2222
            SBR High Roller
            • 02-17-09
            • 130

            #6
            Yea I hear ya...it does sound too good to be true but maybe this guy just wants out. Like I said I didn't see it yet - going to look at it this weekend. I am sure its not going to blow me away, I'm just hoping its decent. I mean if they are both fully rented, it can't be that bad?
            Comment
            • Br0nxer
              SBR Posting Legend
              • 03-25-11
              • 13665

              #7
              425 a month rent

              where the fukk do you live. gotta be alabama

              probably section8

              425 a month here doesn't get you a cardboard box in a fukkin dark alley
              Comment
              • Smoke
                SBR Aristocracy
                • 10-09-09
                • 48111

                #8
                Originally posted by Br0nxer
                425 a month rent

                where the fukk do you live. gotta be alabama

                probably section8

                425 a month here doesn't get you a cardboard box in a fukkin dark alley
                Comment
                • ngates815
                  SBR Posting Legend
                  • 12-01-09
                  • 13845

                  #9
                  Originally posted by downtown2222
                  Yea I hear ya...it does sound too good to be true but maybe this guy just wants out. Like I said I didn't see it yet - going to look at it this weekend. I am sure its not going to blow me away, I'm just hoping its decent. I mean if they are both fully rented, it can't be that bad?

                  Or it can't be true.

                  The guy wants to sell because he found property in some other country?
                  I'm sure the property in the other country isn't going to be making him a profit after 10 months like this one did.
                  That is unheard of.
                  Comment
                  • Easy-Rider 66
                    BARRELED IN @ SBR!
                    • 02-14-12
                    • 36098

                    #10
                    Comment
                    • secretstash
                      SBR Posting Legend
                      • 03-29-10
                      • 14907

                      #11
                      sounds like a nigerian scam.

                      where did u hear bout this? lemme guess guy got ahold of u from email or craigslist? LOL

                      his grandmother is dying to and he might need u to cash a billion dollar check to split with him

                      -stash
                      Comment
                      • YorkHunt
                        SBR Hall of Famer
                        • 12-11-10
                        • 7496

                        #12
                        There is craigslist scams like this now. Be weary. $425 a month here in California can barely get you a week at a raggedy motel.
                        Comment
                        • downtown2222
                          SBR High Roller
                          • 02-17-09
                          • 130

                          #13
                          Originally posted by YorkHunt
                          There is craigslist scams like this now. Be weary. $425 a month here in California can barely get you a week at a raggedy motel.
                          I did find this property on craigslist but how could it be a scam?...I am not doing anything until I look at it and inspect everything in person and meet the guy.

                          What kind of documents should I ask to see to make sure it is legit?
                          Comment
                          • cecil127
                            SBR Hall of Famer
                            • 11-19-09
                            • 7310

                            #14
                            make sure theres not a river real, real close by.....they give those phuckers away out near harrisburg pa.
                            Comment
                            • downtown2222
                              SBR High Roller
                              • 02-17-09
                              • 130

                              #15
                              Originally posted by cecil127
                              make sure theres not a river real, real close by.....they give those phuckers away out near harrisburg pa.
                              I just looked at the map and it does look like there is a river close by....It is in PA but not harrisburg.

                              What does a river close by mean? I need to get extra flood protection insurance?

                              Like I said, I am new to this
                              Comment
                              • Br0nxer
                                SBR Posting Legend
                                • 03-25-11
                                • 13665

                                #16
                                guy probably doesn't even own the place

                                its a scam
                                Comment
                                • chilidog
                                  SBR Posting Legend
                                  • 04-05-09
                                  • 10305

                                  #17
                                  Originally posted by downtown2222
                                  I just looked at the map and it does look like there is a river close by....It is in PA but not harrisburg.

                                  What does a river close by mean? I need to get extra flood protection insurance?

                                  Like I said, I am new to this
                                  I would check to see if the property is in a flood plain. I remember finding a duplex for about 16k when I lived back in the States, and when I did my due diligence, I discovered that it was in a flood plain, and I would not be able to get flood insurance on it.
                                  Comment
                                  • secretstash
                                    SBR Posting Legend
                                    • 03-29-10
                                    • 14907

                                    #18
                                    Originally posted by downtown2222
                                    I did find this property on craigslist but how could it be a scam?...I am not doing anything until I look at it and inspect everything in person and meet the guy.

                                    What kind of documents should I ask to see to make sure it is legit?
                                    its 100% a scam man

                                    these types of nigerian scams have been going on for awhile now.

                                    they dont do these with just houses.. they do this with pets/tvs/etc They Even offer to BUY YOUR ITEMS.. we will send u the check, my guy will come pick it up and pay u but I am out of town..etc u never get the check cleared because its fake and not real.. they run off with ur ipad/etc


                                    in your particular case
                                    the guy will basically try anything to get u to send money for a check or to pay him directly.. etc

                                    for instance.. u go all the way to property and its locked.. what u gonna do call the guy? email him back? what next.. he will say that the tenants must be gone for the day.. eventually he is hoping u give up on the inspection while he lowers the price to 2k or even 500$.. lol cuz any money is good when u wont actually owe anything.. OR he will offer to split the inspection cost.. just send him ** $100 and he will cover it and send u a copy of the full inspection. LOL once again any money is good because he doesnt own the land or houses.

                                    beyond all this he was hoping for someone a bit dumber than u (no offense) who wouldnt want a land survey/inspection/take a look at it/etc he just wants a guy to write a check or cash his fake checks in which ur bank will not clear 3 days later and u will be out DOUBLE the money.

                                    its a nigerian scam man let it go.

                                    next he may write to u and say that he had to leave EARLY on his business venture but u can send all payments to Alfonso Galopa Gerrico in BumfukEgpyt and he will receive the funds. LOL

                                    good luck man but its a scam im 100% sure of it.

                                    -stash
                                    Comment
                                    • downsouth
                                      SBR Posting Legend
                                      • 01-13-11
                                      • 11580

                                      #19
                                      8k is not the sole indicator that it is a scam. It is very, very cheap on a duplex though. I have heard of a few of these from investor friends of mine but have never purchased one personally. Cheapest I have got was a batch around $40k (with $1100/monthly rental income on duplex)

                                      My guess would be that it is very old and in very dilapidated condition. $825/month sounds solid but if he is selling it for that price then there is obviously something flawed in the process. Maybe he generates $800/month but has to turn the place over every 3 months due to lousy tenants.

                                      I do not know what the laws/rules are for closing real estate deals in Pennsylvania but if this is a project you decide to further pursue make absolutely certain that you have an attorney of your choosing involved in the process. It will costs you roughly an extra 1k but will allow you to get title insurance and avoid any potential scams.

                                      As far as being a landlord, has it ups and downs, I would recommend making your first investment purchase something a little closer to home if possible. An hour and a half is a long way to go to check on things and you will get some tenants that feel like calling you every time a lightbulb goes out. Plus, if you have something that far away and are constantly having to call a handy man you will eat up a lot of your profits.
                                      Comment
                                      • meader99
                                        SBR MVP
                                        • 10-30-10
                                        • 4223

                                        #20
                                        ^^^ Pretty solid advice. There are obviously some red flags that others have already brought up. $8000 is damn cheap and the rent to me doesn't make sense. Rent is super high right now because people can't get loans. I picked up a foreclosed property back in August as a rental and rent it for more than it would cost someone to buy it with taxes and insurance included. Definitely get a lawyer if you get to clsoing. I think you can get it done for less than $1000 and it provides you with title insurance. The only other thing that would concern me is the distance. You will need someone you can trust that can check in on the place. An hour and fifteen minutes may not seem like much, but it will if you end up going there every other week for misc things.
                                        Comment
                                        • meader99
                                          SBR MVP
                                          • 10-30-10
                                          • 4223

                                          #21
                                          Originally posted by Br0nxer
                                          425 a month rent

                                          where the fukk do you live. gotta be alabama

                                          probably section8

                                          425 a month here doesn't get you a cardboard box in a fukkin dark alley
                                          True that. In Northern Illinois that duplex would rent for around $900 for each side.
                                          Comment
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