Skip to content
General Landlording & Rental Properties

User Stats

2
Posts
0
Votes
Sneh Pandya
0
Votes |
2
Posts

Should I buy this property

Sneh Pandya
Posted Jan 16 2022, 11:05

I am planning to start my real estate journey and in discussion with one property

Price : 275k

Rent Estimate : 1900 - 2100

Vacancy rate : Almost none.

Monthly Mortgage and HOA : 1400

It does appear to be great property, let me know if I am missing anything to consider.

Thanks

User Stats

1
Posts
0
Votes
Replied Jan 16 2022, 11:19

im 16 inspiring to whst u have done. I'm curious how did do it can you please break it down to me

User Stats

4,058
Posts
4,834
Votes
Jonathan Greene
  • Specialist
  • Mendham, NJ
4,834
Votes |
4,058
Posts
Jonathan Greene
  • Specialist
  • Mendham, NJ
Replied Jan 16 2022, 11:24

No one can give you an answer here because you didn't say what state it's in, what kind of property (seems to be a condo or townhouse) it is and what condition it's in. What's the potential appreciation? Is there a current tenant. At face value, a 275k purchase price with 2000 rent is not great value, but it could depend where it is.

Ignite Funding  logo
Ignite Funding
|
Sponsored
Maximize Your Returns with Trust Deeds Earn 10%-12% annually on collateralized real estate investments. No fees to invest.

User Stats

6,490
Posts
6,731
Votes
Bjorn Ahlblad
Pro Member
#5 Multi-Family and Apartment Investing Contributor
  • Investor
  • Shelton, WA
6,731
Votes |
6,490
Posts
Bjorn Ahlblad
Pro Member
#5 Multi-Family and Apartment Investing Contributor
  • Investor
  • Shelton, WA
Replied Jan 16 2022, 11:31

No one should buy property without learning how to underwrite first. 

User Stats

2
Posts
0
Votes
Sneh Pandya
0
Votes |
2
Posts
Sneh Pandya
Replied Jan 16 2022, 12:23
Originally posted by @Jonathan Greene:

No one can give you an answer here because you didn't say what state it's in, what kind of property (seems to be a condo or townhouse) it is and what condition it's in. What's the potential appreciation? Is there a current tenant. At face value, a 275k purchase price with 2000 rent is not great value, but it could depend where it is.

 Kind of property : Condo

Condition : Good 

Appreciation : 3%

Current tenant : Yes

State : New Jersey

User Stats

13,199
Posts
9,970
Votes
Theresa Harris
Pro Member
#3 Managing Your Property Contributor
9,970
Votes |
13,199
Posts
Theresa Harris
Pro Member
#3 Managing Your Property Contributor
Replied Jan 16 2022, 12:43

Does the mortgage payment include property taxes?  Will the tenant pay for all the other costs (water, sewer, electricity, etc?)

User Stats

24,945
Posts
37,103
Votes
Nathan Gesner
  • Real Estate Broker
  • Cody, WY
37,103
Votes |
24,945
Posts
Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied Jan 16 2022, 15:04

I can answer your question. You don't appear to understand how to determine "good" cashflow. Too many people think cashflow is anything left after the mortgage, taxes, and insurance, but you should also account for approximately 10% for maintenance, 10% for vacancy, and 10% set aside for capex. Brandon also recommends setting aside something for property management, even if you manage yourself, because your situation may change. If you buy property with all those expenses included in your calculation, there's very little chance of failing.

https://www.biggerpockets.com/...

P.S. I'm not saying this property is definitely a bad investment; it may be a very good investment. I'm just basing my answer on your original post. If you don't know how to truly analyze a property, every investment is a crap shoot.

  • Property Manager Wyoming (#12599)

American West Realty & Management Logo

User Stats

9
Posts
0
Votes
Phong Thanh Ngo
  • New to Real Estate
  • Portland, OR
0
Votes |
9
Posts
Phong Thanh Ngo
  • New to Real Estate
  • Portland, OR
Replied Jan 16 2022, 15:21

Hi @Sneh Pandya, does your monthly mortgage and HOA expense include other things that are substantial such as the monthly property tax, homeowner's insurance, and potential property management expense if you go that route? With a 500-700 buffer in rent, it sounds like you may still cashflow but the CoC return % may be a consideration depending on how much money you are putting in.