This 2 flat duplex recently hit the market in Fitchburg. It is an interesting property. Both units have 2 bedrooms, and have been completely remodeled. There is a huge garage that can probaby fit 4 cars, plus a workshop and storage. In-unit laundry in both units. Great location with a country feel, but less than 5 minutes to the Beltline & Park St. The main problem is that there is an addition on the back of the house that is not close to being finished. It is framed in and has a roof, but that’s about it. You need to completely finish the interior as well as put siding on the exterior, and fix the area where the addition meets the garage (there is currently water/ice getting inside on the ground level). The other negative to this addition is that it doesn’t add any bedrooms…both units are still 2 bedroom units. Both good sized units, and one of them with 2 bathrooms…but both just 2 bedroom units. So not sure how high you can go with the rental charge for each unit. I’m going to guess $800 and $900…$1,700 total.
Assuming 25% down payment at $150,000 purchase price with 4.5% interest rate on a 30 year loan…Mortgage payment: $570 Taxes: $335/mth Insurance: $80/mth Maintenance fund: $250/mth (2% of value) MONTHLY EXPENSES = $1,235 MONTHLY INCOME = $1,700 CASH FLOW = $465/mth Let’s assume it costs $20,000 to finish that back area of the house. That would mean you invested $57,500 (25% down plus $20,000). With $465/mth cash flow ($5,580/year), your Cash on Cash Return would be 9.7%.