Rental property teardown

[Kalen Jordan]

I just did a quick google search for cash flow properties in Missouri and found this one - it's advertised as a 22% return.

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I'm just curious what types of things you would point out as potential flaws with this property or questions to ask or things to look into.

I'm sure there are all the basic things like you would want to have a relationship with the broker and/or check references, look into the vacancy rates / unemployment rates of the neighborhood, etc.

[Sid Bergstresser]

@Kalen Jordan, that property is in the ghetto.  High crime and bad schools.  You can still make money, but be prepared for everything that potentially comes with that type of neighborhood- higher turnover, poor tenants, higher repair costs between tenants, etc.

Out of curiosity, what did the BP calculator give you for a return compared to the seller's 22%?

Sid