Cash flow rental for sale - Please offer your opinions

[Ryan Johnson]

Please forgive the typo. I'm not sure how to edit it. Thanks.


Hello, I have a 2 bed 1.5bath townhouse for sale and would like your opinion on price, marketing, etc. These are the specs:

It is occupied by a married couple. Both are working and have no problem paying on time! NO RENOVATIONS NEEDED!! The townhouse has already been renovated, painted, and cleaned prior to the tenants moving in.

The profile pic to the left is a picture of the townhouse.
MONTHLY RENT: $769.00
LEASE TERM: 20June2009 - 31July2010
SECURITY DEPOSIT PAID: $749

1240sq/ft
Property taxes: $1,451.54 yearly
Sold for $80,100 on 12/4/2007

Please let me know what other information is needed to price this correctly. Thanks!

[Jon Holdman]

Corrected the title.

I'm with Jon, what's the HOA fee? Is the HOA well funded? Is the HOA well managed? Are they anti-landlord? Anything restrictions on renting in the by-laws? Personally, I wouldn't buy a property in an HOA, period, so this one wouldn't be for me.

I'd use J Scott's calculation, too. But, with only $385 allocated to expenses and $121 allocated to taxes, I wonder if that's enough. That leaves only $264 and seems like insurance and HOA would eat up a lot of that, leaving little for maintenance, vacancy, and anything else that comes up.