First Time Investor/Potential Landlord
First time poster, long time viewer, hi all!
I've been going through Brandon's videos while I search for properties. I also just finished Rich Dad, Poor Dad. I gained a ton of perspective from it - but I'm also taking some parts with a grain of salt. Robert makes it sound easy - but it's not always that way given what you have going on in your life - at least that's my take!
I wanted to know if this was a potentially good deal based on your opinions... please be gentile - I'm just getting into this. FYI - if it helps - I'm based in the Chicagoland area - just about 20 miles outside of the city. I have a decent budget for a down payment for several units and I was thinking of starting with something like the following...
Unit type: Condo (only looking at turnkeys; not going to rehab - much)
Asking price: $182,000 - would offer $160,000
Fair rent price: $1,600/mo
Property taxes: $2203/year; $184/mo
HOA: $223/month
Mortgage (P&I): $635/mo
Landlord insurance (estimated): $20/mo
Optional considerations:
Property management: $160/mo (10% of the rent; I am not going to use property management at first; I will manage it)
Vacancy: $160/mo for as long as it is vacant
Repairs: $80/mo as needed
I obtained the optional numbers above from here:
https://www.biggerpockets.com/renewsblog/2013/01/1...
This comes down to...
Worst case scenario of $138/month given vacancy, property management, and repairs.
Best case scenario of $538/month without any of the optional considerations - so hopefully this is the profit I would be looking at almost every month.
Thoughts?
What am I missing?
Thank you ahead of time!
PS - I am looking to scale up eventually. Once I establish I'm doing the math correctly and I find some good options in the area, I'll probably invest in 2-4 units. I'm also considering SFH but those are extremely difficult to find turnkey and a good price for the math above for optimal net profit.