Updated over 5 years ago on . Most recent reply
Multifamily Investing Windsor Locks Ct
Looking a what seems to be a perfect house hack coming up tomorrow. Mortgage will be what tenant pays $1100 / month payment and lease is until December. Only thing I’m weary about is current state we are in, not having 6 months of reserves after down payment, and property being on market for 130 or so days already....
What should I be worried about or look at in more detail going into this showing? Should I be cautioned on this deal?
Most Popular Reply
If the rent is exactly equal to the mortgage then I'd avoid it. You need cash flow left over to pay for repairs and reserves. Banking on market appreciation is a very risky game, particularly considering the recessionary environment we're currently in. Unless there's a reliable way to force appreciation, I'd stay away from this type of deal.
Consider how that market is treating landlords with evictions and collections right now. Are they looking at suspending evictions until 2021? If so, just look elsewhere. Lots of rent will go unpaid in those areas and properties will most likely be on sale once folks get in trouble and start running out of cash reserves.