Roofstock Property Purchase: Finding My First Property on Roofstock

Now that I am familiar with the site, I can get started searching for appropriate properties.  There were several properties that were great deals when I was first exploring Roofstock, but I was unable to move fast enough to make a move on them.  I recommend getting pre-qualified for a loan as quickly as possible if you are serious about getting a property so that you can move quickly on good deals.  

In general, I've found that very few of the properties reach my standards for a solid investment.  What is my criteria?

• Under $150k
• Cash on cash return of 10%+
• 2-3-star neighborhoods (would have to be really good to get into a 2)
• Buy and Hold
• Refinance/capture my initial investment within 5 years so that I can repeat the process

Roofstock likes to list the 5 year yield and IRR, which can make the properties seem like  better opportunities than they really are. This criteria revolves mainly around appreciation, which I don't like to count on since it is so dependent on the current state of the economy. I want my investment to make sense without appreciation, and then enjoy the additional benefits of it when it occurs.  

With that in mind, I have found a property that looks like a good opprotunity in a growing area, Pittsburgh, PA:

It is a duplex in an average neighborhood listed at $120k, with total market rent at $1600.  

Notes on this property:

• Not obvious that it is a duplex as there is only 1 address listed
• Unclear whether Roofstock's valuation of the property is for one or both of the units
• Unclear whether or not both units are vacant

UPDATE: I was able to quickly clarify these items through my Roofstock advisor via email/phone. Here are my initial numbers after some research:

This is a little below my desired cash on cash (CoC) rate, but is in a good area so I am willing to take a slightly lower CoC for that.  I did more research on the area and the investment, and it's looking like a good property.  Based on valuations from Zillow, Trulia, and Roofstock itself, I figure that the appraisal and actual valuation will come in $10k+ lower than the list price, and with inspection and appraisal contingencies on this property I feel okay about going into it at a higher initial offer price since the numbers are still working out at the offer price.  I figure worse case, I'll just get an even better investment! We'll see if this is a good strategy or if the seller will be very fixed to the offer price.

There are a few factors that have helped me jump on this property before anyone else:

1. The list price is higher than most valuations
2. It is an Inspection Contingency property, meaning not Roofstock certified and rent is not guaranteed
3. There is unclear documentation on Roofstock.com as to the single or duplex valuation and/or vacancy
4. Duplexes generally require 25% down payment compared to the normal 20% down on SFH investments (I didn't realize this until I got into closing)