Homeowner · New Smyrna Beach, FL · Member since 2018 · 7 posts · 1 vote
Hello,
I'm looking for people to analyze and comment on this deal. To provide context, this will be my first investment property in general and I'll be managing it. I happen to know the owner (family friend) and is motivated to sell. With that being said, the overall condition is turn key ready to rent. Also, the numbers should be relatively accurate (insurance, property taxes, rent, etc).
Although the cash flow isn't there entirely (been looking at 150-200/month for SFH but tough in this market), I'm thinking between a great renter and over time, this can improve historically speaking.
How does this deal look for a buy and hold strategy?
My first instinctual thoughts are that this deal is more appreciation focused than cash flow-focused. If you are someone who is relying on cash flow for their investment I will continue to look for other deals. Imagine if one of your metrics is slightly off (such as the vacancy rate) - you'd either be breaking even or losing money on the deal. On the other hand, if you truly have done your research in this area to support the longevity of this investment and you plan to own it for 5+ years I could see the appreciation alone making sense to go forward with it.
If this is a great location and you feel a good vibe for this neighborhood, good school, shops, restaurants and people are moving into the area. The condition of the house is pretty new and being maintained properly, I'm okay with that cashflow.
If this is a class B/C neighborhood, 20-30 year house and barely maintained or upgraded, I wouldn't buy. Anything breaks would easily wipe out your entire year or two profit.
Doesn’t look that good. You don’t have any capx counted in the deal. If you include that the cash flow will be negative. I’m in Orlando and a Realtor if you want to connect.
My first instinctual thoughts are that this deal is more appreciation focused than cash flow-focused. If you are someone who is relying on cash flow for their investment I will continue to look for other deals. Imagine if one of your metrics is slightly off (such as the vacancy rate) - you'd either be breaking even or losing money on the deal. On the other hand, if you truly have done your research in this area to support the longevity of this investment and you plan to own it for 5+ years I could see the appreciation alone making sense to go forward with it.
Yes, your instincts are correct - I will be planning on holding it 15+ years.
If this is a great location and you feel a good vibe for this neighborhood, good school, shops, restaurants and people are moving into the area. The condition of the house is pretty new and being maintained properly, I'm okay with that cashflow.
If this is a class B/C neighborhood, 20-30 year house and barely maintained or upgraded, I wouldn't buy. Anything breaks would easily wipe out your entire year or two profit.
Agreed. It is in B/C neighborhood, 30 year home with upgraded bathroom, tile throughout and laminate in the bedrooms, newly upgraded electrical panel, newer roof, and in a college town area with plenty of amenities surrounding.
Doesn’t look that good. You don’t have any capx counted in the deal. If you include that the cash flow will be negative. I’m in Orlando and a Realtor if you want to connect.