I'm looking at a small duplex near downtown San Antonio. Great cash flow area with low prices. This property, however, sits right on the I-10 frontage road, with the front porch literally starting at the freeway traffic. There is a back alley access for parking. My concerns are getting near market rents, who would want to rent it, and one day selling it, knowing that there would be a limited market for it. For cash flow, assuming decent tenants and near market rents, the numbers are great.
Anyone else have experience with something similar or have ideas on what else to consider, or whether this is just one to pass up? There are renters in houses a few doors down, in the same situation, but I can't find out what they're paying. Plenty of resale comps nearby, but for houses that are tucked back in the neighborhood.
Thoughts? Jump in, or run away?
Knock on some doors.
@Brad Shepherd I guess it depends on who you plan to rent to. Lots of strategies but I always think about who I want to be in business with (my tenant) and try to buy the homes they may want. However I think I could possibly get better cash flow with inferior properties, but this is what works for me.
I passed on even making an offer yesterday on a house with what appeared to be a paranoid neighbor with intimidating material in the yard because I wouldn't rent a house next to that with my kids. I also wouldn't rent on an access road but someone will. I just don't know who that person will be. Not sure I shed any light on your decision but that's my two cents.
Buy right and you will be fine , the house has been lived in before , and I guess there are neighbors .
Thanks guys. I appreciate the feedback. @Will Pritchett , I really appreciate that insight, thinking about who it is I want to build my business around. That's some good food for thought.
I shared my hesitations with the seller and told him I'm going to pass, unless he'd leave the financing in place. He took the offer, and the numbers make sense. I'm going to make a go of it.
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