A lot of people are going to say "depends" or "need more info". Search for posts for "expenses" or "figuring out cash flow" or use the free calculator that they have on the site (this can only be used a few times if you do not have a Pro account). Another source would be to find an experienced investor in your area to talk to about the deal. I am only beginning investing and learning, but I know the more experienced investors on the site would need more information to tell you whether it is a good deal. Spend some time researching on the site- there is a wealth of information already posted! Good luck!
@Mark Shafer Did you pay cash? Do you have payments?
After expenses I would cash flow around $200 per month.
@Mark Shafer If your calculations show 200 a month then that is a solid deal. Is that including insurance and taxes? You can try to get the management fees down a percentage point or two to put more money in your pocket.
Thanks for the help. How much should I allow for turnover expenses?
@Mark Shafer Just heads up that the HOA could raise the fees next year. I would do my due dillegence and look at when all the major things were done last (i.e. roof). Also, would familiarize yourself with the decs and bylaws, and maybe even join the board, or at least attend the meetings. Keep this in mind when you are budgeting as this can eat up your cash flow pretty quickly.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Get the Ultimate Beginner's Guide
Sign up today to receive the popular eBook for free!