90 Day Challenge-1st Investment Property
repost from earlier post...
Hello everyone, in my first 90 days, I took the challenge and found my first investment property with incoming money producing tenants. My ROI will be $7200 per year and the purchase price is $62,500, around a gross ROI of 11%. After taxes, insurance and capital reserves I think we'll be around 8%. The preexisting rental agreement is way under market value for a 2/2 at 917 Sq ft. Fair market comparable for rent's say my market supports $900 to $1250 per month, what a game changer for ROI. I'm buying the property with cash, in a trendy neighborhood. My assumption to get moderate rent. I'd have to invest around $5,000 in new windows and some other capital, improvements like bathroom improvements, paint and texture. As for my ROE, I'm paying cash, so I have more to work with if I want to acquisition another property. I did find a gutted house for $27k I think I can use this for a house hack and off load some of my maintenance expense for one of my Subcontractors who wants to come to Georgia to retire. I'm a little torn get a gutted house that makes no income or find another 50K house with an occupied tenant to get more income? The answer is clear, the perspectives are torn.