advice on investment Property in Conroe Texas

[Sam Magi]

Buying my second investment property and just like the first one looking for some advice from my fellow BP members!! Thank you in advance for this portal it has been a great help to me. 

Property is 3/2 SFH one story. 2000 sqft , built 2013 in Conroe, TX . Trying to buy it for all Cash for 201,496/ (current loan). A friend of mine has to leave the country for job issues.

Down payment: $201,496

Current Rents: $1800 -$2000/ month

GSI: $21600 (low) $24000 (high)

Expenses: Vacancy @5% = $1080 (low) $1200 high

Taxes: $5625/-

Insurance: $1100/-

No home warranty since Builders warranty is valid until 2023.

Utilities: $2340/-

HOA: 660/-

Maintenance: 1000/-

Property Management: $2160/-  (i am in CA so will have to find some mgmt company)

Net Income: $7295 (low) $9575 (high)

ROI is 4-5% without accounting for dep.

Its hard to find anything in this market with decent ROI. Is this a good buy and hold investment?

[Casey Miles]

I'm in Conroe every other week. I'm form Phx and only hold property in AZ. When you say buy and hold, how long are you anticipating the hold? I'm guessing your banking more on a quick appreciation? The reason I ask is I would never but up $200k cash to make $10k a year. Why not finance and leverage? Unrelated to the area, I just always wonder why people pay cash vs finance (with the exception of buy with cash and refi, etc.)