cash flow galore at an amazing discount to the market. Rehabbed and long term tenant.
Purchase Price: $165,000 cash buyer preferred but this property can be financed for an even better cash on cash return.
We have this great duplex that we acquired undervalued and almost done with the renovation of the back unit and ready for someone to enjoy a solid return!
Two spacious 2 bedroom, 1 bath units (795 SqFt each approximately) located in the Tower District. Dual pane windows, 1 car garage each.
The front unit has been occupied by a long term tenant (6 years) and pays $650 a month with a month to month lease that can be renegotiated at the end of the year.
The back unit will be rented at $750 (fair market value) and it will be renovated so it will go fairly quickly. Prefer all cash buyer but the property can be financed.
Here are the numbers:
Purchase Price: $165,000 Gross Cap Rate: 10.18%
Unit #1 Rents: $650.00 month $7,800 year
Unit #2 Rents: $750.00 month $9,000 year
Total Rents: $1,400month $16,800 year
Property Taxes: 1.22% $2,013
Water & Garbage: $1500
Total Yearly Expenses: $5,013 Adjusted Net Cap Rate: 7:15%
There will be very little maintenance the first years as the units have recently been updated. The sale will come with a section #1 termite clearance report
and a two year roof certification. Also included will be 6 months of property management to get the new owner settled in with tenants. There after we can set up the tenants on a direct deposit or owner can choose to retain the property management for a fee.
Average cap rates in Fresno for a duplex is between 5% - 6% with rents increasing a year by 3-5% so this will be an above market cap rate.