I’ve mentioned The Roach Duplex a couple times in passing, and wanted to throw out a little bit more info (and an exterior picture)…
The duplex was built in 1943, has 4 bedrooms and 2 bathrooms (2/1 on each side). It’s a side-by-side, one-story property, and probably needs about $20K worth of work to get it into rental shape. The roof is in good condition, but the exterior siding needs some work. The inside needs a good bit of cosmetic work, HVAC replacement, and perhaps some plumbing and electrical work (haven’t turned on the utilities, so I don’t know for certain).
My plan on this one is to hold it until I can resell it for a profit. I am purchasing it for $22K, and the tax assessment on the land alone is over $50K. I’m trying to sell it to another investor for about a $10K profit, and have it listed for sale at $33K. If necessary, I may decide to owner-finance (for a small premium), or worst-case, I would hold onto it for a couple years until the market turns, at which point I think this piece of land in this location will be a good bit more valuable.
Valued as an income property, I’m guessing it’s worth about $60K. This is based on income of $1000 per month (each side renting for $500), expenses at 50% of income (50% rule), and a cap rate of 10% (reasonable for this type of property in this area). This is what I’d reasonably pay for it in rental condition. So, if it needs $20K worth of work, I think a reasonable asking price is up to about $40K based on it’s income potential.
Valued using comps, it’s probably worth a good bit more. Other duplexes in the area are selling for $60-90K, and the tax assessment of the property is just over $120K (not very meaningful, but a data-point nonetheless).
Anyway, until I sell it or put it back on the MLS (which I’ll do after I close on it), I won’t really have much to say about this property. At this point, I consider it a longer-term investment…and am not in any rush to determine what it’s eventual fate will be…
Here’s a picture: