Duplexes from $170,000

You have an incredible opportunity not seen in San Diego for 20 years. The San Diego real estate market is hot. Homes that sold for over half a million dollars ($500,000+) only 5 years ago can now be purchased for half that.

An overlooked area is duplexes. Why? Most duplexes are purchased by investors. Investor loans are risker than home loans because if someone ever gets into financial trouble, they'll quit paying their investment loans before they quit paying for their home. Banks don't want to do investor loans. So the prices on duplexes have dropped.

At these prices, a duplex can bring in up to $1000 which can count towards your loan payment!

Sale Price: $149,000 Units: 2 Location: San Diego Date Listed: 9/7/09 Each unit has 3 bedrooms and 1 bath. Each one should rent for $1000-$1200 per month Approx Payment: $1300/mo @ 7% Down Pmt for Owner Occuppied: $5250

If you currently rent, this creates an enormous opportunity if you will live in the duplex for 3 years. You can then qualify for the IRS's First Time Homebuyer credit that will cut up to $8000 from your taxes. If you usually get an IRS refund check, it could be up to $8000 more this year. That will cover your downpayment. The only restriction is you must live in the property for at least 3 years.

After you have lived there for 3 years (the minimum time necessary to keep your First Time Home Buyer rebate from the IRS), you can rent out both sides and have positive cash flow of $500-$1000 per month.

Example:

Do the math. You put up $5250 + closing costs to buy the property. Your monthly payment after collecting the rent for the other side is $1300 - $1200 = $100. When you file your taxes for 2009 (after Jan 1, 2010), you'll get a tax rebate up to $8000. After 3 years you can rent both sides for $2400. Your loan payment is still $1300. Your profits could be as high as $1100 per month.

WARNING: The above example does not take into account vacancies, repairs or depreciation write-offs. Results may vary.

You have to move fast, deals like this don't last long. If you would like me to send you daily updates on duplexes and triplexs as they are listed in San Diego, please give fill out the form below. There is no cost or obligation. However, I am looking for new clients who might be interested in purchasing so I need your complete information.

Dave Berger
Broker - Epic Realty
CA Broker License: 01108047
619.721.4679
dave@epicsd.com