Getting Started and Sharing
I listened to the Podcast interview of Josh and felt the motivation to start sharing on this community that has given me so much.
I have an offer in on a duplex that will cash flow at around $500 per month. That deal will close in 30 days. But I just last night looked at a 3+2 in the downtown area that has me considering to pull the trigger again. Too fast? But Nashville is a busy market.
I am a little nervous about this new one because the neighborhood in pre-transition but is close to other areas that have been turning bad into good. It is a 3+2 1200 square feet for $115,000. The rent average is about $950 and that should cash flow out to about 200 per month with a 20% down conventional investor's loan.
The hesitation is the poor, working class neighborhood (no pitbulls or drug dealers though), that may or may not transition. Possible section 8 tenants. There is a community church right across the street. There is also a few boarded up homes in the neighborhood but I cannot see that lasting long in the booming Nashville market. The rental market is very strong, especially this close to downtown - great 5 minute commute to downtown.
Any thoughts from other investors about this type of situation. Do I just trust the numbers? I completed the buy and hold rental calculator on BP. The numbers seem to work without having to rely on appreciation but that would be a bonus in a few years if this neighborhood follows what has happened just 5 minutes away.
Thanks for your thoughts.