New Investor Rental Property
I am new to these forums and also a first time investor and am hoping for some advice on a potential first rental investment. It looks like a good deal and I am buying from someone I trust but could use some input from sophisticated investors.
Purchase price: $110,000
20% down
Loan rate: 4.75%
APR: 5.0% (would love some explanation as to how this is calculated
Rental rate: $1250
House type: row
A friend works for a company that flips houses and is doing the flip. They were going to list it for $120,000 but are selling to me for $110,000. It's in a decent neighborhood, the houses around it are valued at $130,000+, right next to elementary school, and zillow estimated the homes in that area will go up 3.1% in value next year. No additional repairs needed and I'll just need a washer/dryer and fridge.
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Hi David, have you checked out the calculator here on the site? It's absolutely amazing! Takes a whole lot of the guess work (and my terrible math skills) out of the equation.