Buy Duplex--Your Net

Invest in a Duplex—Understanding Your Potential Returns

Potential Rent Income

Based on the Fresno Housing Authority's updated rental guidelines as of April 1, 2023:

• 1-Bedroom: $1,272

• 2-Bedroom: $1,604

• 3-Bedroom: $2,260

• 4-Bedroom: $4,587

• 5-Bedroom: $2,975

Example Property:
Suppose you have a duplex with:

• One 2-bedroom unit with potential rent of $1,604/month.

• One 3-bedroom unit with potential rent of $2,260/month.

Total Potential Rent: $3,864/month
(Note: This rent is an estimated maximum. The actual rent may differ based on Housing Authority evaluations.)

Estimated Financials for a Duplex Investment

Purchase Price: $350,000 (imaginary example)
Down Payment (25%): $87,500
Loan Amount: $262,500
Estimated Monthly Payment (PITI): $2,257 (This includes principal reduction, which builds equity each month. Verify actual figures with your lender.)

Monthly Income vs. Expenses

• Total Rent Collected: $3,864

• Gross Rent (after vacancy adjustment): $3,379

Expenses:

• Mortgage Payment (PITI): $2,257

• Utilities (water, sewer, garbage): $200

• PG&E: $40

• Landscaping: $100

• Maintenance: $150

• Vacancy Factor (5%): $195

Total Expenses: $2,547
Expected Monthly Net Income: $1,317

Annual Return on Investment

• Monthly Net Return (including principal reduction): $1,817

• Annual Income on Investment: $21,804

With an investment of $87,500, you could potentially achieve a Cash-on-Cash Return of around 25%.
(Formula: Net Annual Income / Total Cash Invested)

Conservative Estimate: Factoring in various market uncertainties, a 10% return on investment is still a good target.

Future Growth Potential

Rent increases, potential property appreciation, and stable mortgage payments over 15 or 30 years can enhance long-term returns.

Contact Information:

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Puneet Bhargava,

Broker Associate/ Realtor        Cell # 559-274-7025 559-712-3434

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Realty Concepts Office DRE #  01100967 

565 Pollasky Avenue Clovis, CA 93612

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