I’m a newbie investor here -
Recently found 2 townhomes in Fulshear, TX - next to katy - selling $426000 total. Both townhomes are still under contructions ready early next year - it’s a 3 bedrooms - do any investors here think that it’s a good rental properties? A good investment?
this is the numbers:
$426000- price total
20% down- $85200
My mortgage rate - 5% - $357840
$996 - principal & interest
3.45% property tax rate - $1207/ mo
$113 + $95 each house's HOA + access to community fitness center
Total : $2617/mo out of pocket
Expected rents $2000/mo each house
8% vacancy rate - $3667/ mo income
2 years warranty for plumbing/ ac/ heater
Cash on cash return - 14.7% before the repairs cost portion
Thanks in advance for any input !
You may want to re-check your math again.
Your principal+interest payment seems WAY too low.
$357,840 - Principal
5.0% - Interest Rate
30 Yr Note - $1,921 per month
20 Yr Note - $2,362 per month
Thanks for the reply Jon - I have re-check the math:
- $85200 downpayment
= $340800- mortgage
4% interest rate -
$1627/ mo - principal &interest
3.45% property tax rate- $1225/mo
$203 /each unit - maintence + hoa + access to community fitness center
$ 3258/ mo total pay out of pocket
$4000/ mo expected rent
$4000- $3258 =
$742 cash flow
Coc roi: 10.45% ( $742x12 / 85200)
( I did not count the vacancy rate ) ( expected 100% occupancy)
Do anyone think it is a good rental property in Houston at all?
@Ho Chi Chris Cheung Fulshear is wayyyy out there for the Houston market. Developers are heading down I-10 with new developments so it is coming but it is still very much a rural market. The job market for your target tenant base will primarily be Katy, Richmond/Rosenberg, and to some extent Sugarland not so much Houston.
@Ho Chi Chris Cheung I don’t see anyone paying $4k for a 3/2 townhouse that far out. 3/2 homes go for about $2500-$2600
I live in katy tx and fulshear is booming but agree w adam. Folks would prob go and rent a SFH w that rent.