New Investor--Would you help me evaluate this purchase?
I haven't done my first deal yet, but I have a friend (property manager) who knows of an investor who will be listing three condos soon and I have asked them to contact me when ready to list. These are one bedroom units (not sure of purchase price but guessing $116,000-$120,000 each) that are rented to professionals in the area (nice area) for $1,020 a month. Taxes are $1,791, HOA is $145 month, and I am guessing insurance at $75 month. We will have a property manager (same friend) in place who says these stay rented with little (if any) vacancy. She will take one month's rent per renter (not per year). If we only purchase one, we can pay cash. However, if we need to purchase all three to get a better price, we will need loans. Initially, this does not look that great to me with best case scenario looking at about $200 month net with mortgages. HOWEVER, we are high income and could use depreciation and any other write-offs that rentals will bring. What do you think? Our goal is long-term rentals to hold "forever" with little headache so we are not looking for "possible" more lucrative flips--just steady income. Is this any good or should we keep looking?