Are these red flags or just first time buyer jitters?
I'm looking at purchasing a condo from a turnkey company in Indianapolis and it looks good on paper but wanted to check with you folks.
Here are the numbers:
Price: $65k
Rent: $1075 (2bd 1.5 bath)
Expenses (PITI, PM, HOA): 697.83
10% Vacancy, 5% Repairs, 0% CapEx (turnkey comes fully reno'd): 161.25
Cashflow $215, ROI 16%
Looking at the MLS, the condo complex has a dozen other properties currently listed for sale and they've all been on the market for some time now. Most are around $58k but one of them has been on the MLS since May and the price has dropped from $57k to $51k. Doesn't seem to be anything wrong with that unit either, just seems like no one else is buying these condos but I don't know why. Should that be a deciding factor?
Thanks in advance!