Will I even be able to rent out in an Expensive neighborhood?

4 Replies

Hey all, 

City: Villa Park, California 

My uncle wants to sell my a property for 800,000 through seller financing and no interest. Market price is approx. 1.2 million - 1.6 million. Estimated rent: 4000-5000

Neighborhood property ranges from: 1 million - 2.5 million 

So my question is, is it worth it to buy this property in this Class A neighborhood. I know the rent is approx. 4000-5000, but will i be able to rent it out for that much? If the tenants have that much money, wouldn't they be able to just buy the property themselves? 

Or should I buy then maybe do some quick rehab and flip it? 

Any advice/thoughts? 

Thanks in advance

Those are flip numbers. 

For rental, you can use rentometer and zillow to get an estimate. If you want more accurate information, ask a realtor to pull you comps for a rental house with similar square footage, beds and bath located close to the property. 

Some tenants may have some money but not the credit to qualify for a loan. 

Your Uncle offering you a zero interest loan of $800K for a property potentially worth over $1 million. I think most of us here will take it all day. 

He's giving you $400-800k in free equity and also seller financing with 0% interest.

I can't believe you're even questioning if you should buy this unicorn once in a lifetime deal.

If you don't buy it tell your uncle to call me and I'll give him $825k for the property, lol.

P.S.  This does not make a good rental you should definitely flip this one.