Investing Very OLD Duplex

[nepoez]

Hello investors,

I`m brand new to investing, since I just went to my first Quick Start. I`m looking at a property that is $400k, pretty decent shape in north west Edmonton. The cashflow will be $600/m factoring in all known expenses including vacancy rate. It is listed as an up/down duplex but it looks like a house with a renovated basement. Not sure if that qualifies as a duplex. The rent is about $2600 currently renting up and down out. But the building is built in 1962!!

So my two questions are: is this even a duplex? Is such an old house be worth that much even though it cashflows? I can`t see such an old house going up 6% a year..

Thanks in advance for any feed back to a newbie!

 

[chargerharry]

A couple of quick suggestions. If it is a duplex, there will be 2 seperate titles, 2 seperate prop tax bills, 2 seperate offers filled out, 2 seperate mortgages, in short 2 of everything. You should be able to find out from City of Edmonton quite quickly if it is a legal duplex. 1962 is getting pretty old and your appraisal will list a remaining life of the building. If remaining life is 15yrs, just for argument, forget about a 25 yr mortgage. Don`t quote me on this but I am sure that my insurance agent told me that I could not add something of this vintage to my RE insurance policy. I don`t think you will have to worry about galvanized pipes but what about aluminum wiring?

Hope this helps.
Harry

 

[Thomas Beyer]

QUOTE (chargerharry @ Apr 23 2008, 10:21 PM) A couple of quick suggestions. If it is a duplex, there will be 2 seperate titles, 2 seperate prop tax bills, 2 seperate offers filled out, 2 seperate mortgages, in short 2 of everything. You should be able to find out from City of Edmonton quite quickly if it is a legal duplex. 1962 is getting pretty old and your appraisal will list a remaining life of the building. If remaining life is 15yrs, just for argument, forget about a 25 yr mortgage. Don`t quote me on this but I am sure that my insurance agent told me that I could not add something of this vintage to my RE insurance policy. I don`t think you will have to worry about galvanized pipes but what about aluminum wiring?

Hope this helps.
Harry

are you buying ONE title or 2 ?

don`t confuse a single family house with a legal basement suite with a duplex !

get an RPR !

1962 is NOT old .. some buildings were built in 20 BC .. and still stand ... or even in Edmonton they have houses from the 1920`s ..

look for structural or mechanical defects !

get a property inspection done by a professional to tell you what is wrong with it .. then adjust price accordingly !

yes, appraisal may show less than 25 years of life remaining .. then it will be harder to get a mortgage !

Ask the seller to give you a mortgage !

 

[nepoez]

Thanks all so much for giving me the feedback!
If it`s one title I`m guessing it`s not a real duplex. What`s the advantage of a real duplex?


QUOTE (thomasbeyer2000 @ Apr 23 2008, 10:34 PM) are you buying ONE title or 2 ?

don`t confuse a single family house with a legal basement suite with a duplex !

get an RPR !

1962 is NOT old .. some buildings were built in 20 BC .. and still stand ... or even in Edmonton they have houses from the 1920`s ..

look for structural or mechanical defects !

get a property inspection done by a professional to tell you what is wrong with it .. then adjust price accordingly !

yes, appraisal may show less than 25 years of life remaining .. then it will be harder to get a mortgage !

Ask the seller to give you a mortgage !

 

[GarthChapman]

It can be a duplex with only one title (most probably are). Don`t confuse titles with zoning. Check if it is zoned R-1 (not a legal duplex) or something like R-2 (is then probably a legal duplex). And remember, your Realtor is paid to find out just such information for you. Have them earn their keep, but get definitive answers IN WRITING.