Comparing Rental Properties
I'm currently looking at two potential rental properties but having trouble running the numbers and developing a system to determine which is the better deal. So I turn to the experts at BP!
Property 1
980 sq feet with an unfinished basement.
Listed for $80k but would lie to get it around $60k. Some potential for natural and forced appreciation.
Likely rent is $600-$700/month with a $450-$500/month mortgage on a conventional 30 year.
House needs approximately $8k in work but is currently rentable.
Property 2
950 sq ft with upgraded utilities, electrical, plumbing, AC.
Listed for $32k and held by an investment company. Little to no appreciation is expected in the particular location.
All cash offer and the property is currently rented for $475/month.
What is the consensus? Been a flipper in the past but never a landlord so this is still new to me.