Is this a good 1st rental?
Hello BP,
Last night I came across a good deal where I feel this can be a great opportunity to acquire my first rental but wanted more insight heres the breakdown:
The property is located in the city where there is some crime but the address is on a decent street
It is turnkey with current tenants paying 1125/month
Tax assessed at 30k, the seller is asking for 24k
It is a 5br 2bth home
I am assuming it needs no work since its currently rented, should I attack this deal or walk away? Personally I do think its a good deal and I would like to negotiate for a better price but I wanted more insight from experienced and seasoned investors.
Thank you!
Most Popular Reply
your saying that the asking price is 24k for a turn key that is generating 1125/m in rent???????
your cash on cash return would be like 135% with cap rate would be above 40% this deal doesn't make any sense and is way to good to be true. to put that in perspective in bad areas people look for 20% cash on cash your looking at almost 7x that and after 2 years of rental income the entire house would be paid off.... doesn't make any sense huge red flags