Ever ok to pay market value for a property?
These numbers are hypothetical but not too far off from what I see in the midwest. Do successful investors ever pay market value if the numbers still work for them in rare instances (and it was a buy and hold SFR)?
Market Value: $50,000
Sale Price: $50,000
Neighborhood: C-Class
Appreciation: Very little
Closing Costs/Registration: $2,000 (est.)
Taxes/Insurance: $100/mo.
Rent: $995.00 (no rehab needed/already rented)
25% allowance for capex/repairs/maintenance: $250/mo.
MONTHLY EXPENSES: ($100)+($250)=$350.00
MONTHLY CASH FLOW: $645.00
CoC %: $7,740/$52,000=14.88%