Should I buy this property
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
im 16 inspiring to whst u have done. I'm curious how did do it can you please break it down to me
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.
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No one should buy property without learning how to underwrite first.
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
Does the mortgage payment include property taxes? Will the tenant pay for all the other costs (water, sewer, electricity, etc?)
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.
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.