We are looking at a 2×2 b/r duplex that is a deceased estate. The duplex requires a good clean, fresh paint & a couple of airconditioners.
The agent has 3 offers in the range of $220k to $240k. Both units are currently tenanted for $120 per week. We have had a rental appraisal done on the property and the revised rental should be around $160 to $170 per week once the paint job and aircon’s are in place. The unimproved land value is $110k.
I have put all the numbers in the Investment Detective software and it seems that we would have a gross return of 6.9% and a net loss of -1.6% based on an interest only loan.
My question is – How can I assess if the clean up and new tenants will increase the overall value of the property???
Any feedback would be appreciated.
Melb
This one is for melb!
I dont know anything about inv detective, dont use it! But generally, tenants dont increase the value of residential property, unless it is specifically targeted to investors!
I would check comps in the area!
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