Duplex condo in Jersey for 186000, property tax 264$, insurance 71$, HOA 120$, property management fee 180$, loan payment 739$, rent is 2000$
Cash flow 635$ per month.
Cash on cash roi is 11.3%.
Question is- 1) is it a good deal?
2) can the initial repairs to make it rentable be tax deductible over a period of 2-3 years that the property is rented out?
Based on your numbers, the deal look solid.
By the way, did you check what covers the HoA fees?
Aside from Landscape/Snow removal, & etc... Does is cover water, sewer, & garbage too?
Those maybe additional cost to you...
Depending on how old the property & what type of repairs done to it, you may need to set aside percentage of the monthly income for future repairs & capital expenditures.
Also, How's the neighborhood on this properly?
Walk Scores? Transportation? Crime rates? Environmental issues? School Ratings? and Etc...
@Mansi Mehta , you should also account for vacancy, cap-ex, repairs. If you used 18% (8, 5, 5), it’d still cash flow about $275. Seems solid.