Hey guys- first original post to the community, there’s a ton of great information on here and I thank all of you for your input and knowledge sharing!
I’m looking at a property built in 2016, current tenant is paying 1950/month. I can purchase for $230k, put 25% down for a mortgage of approximately $1250 for 30 years. It’s a 4/3 2000 sq ft in an up and coming area. The original owners purchased it for $180k in 2016.
The deal seems like a no brainer to me, I’m just a little concerned about talks of a correction and that it’s increased over 25% in 2 years. What do you think? Thanks for the input!!
@John Thedford thanks for the feedback. I think I can get $5k off the price, but does the price really matter if the cash flow makes sense? For my RE investments, I have always bought and held.
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
7y
The experts say you make your money when you buy. How much of a discount is debatable. I would not personally buy this deal there is not enough of a discount. When the market changes you may find yourself underwater.
I'd be a little curious as to why the current owners are selling. If they purchased at $180k, and receive $1950/month in rents, that is over a 1% rent rate. That isn't easy to find.
Make sure to factor in all of the expenses. $1950(rental income) -$1250 mortgage