Rental Property - Yes or No
Hey all!
Long time lurker and prospective/active investor.
I've always wanted to get into rental real estate. Always been a passion of mine. I recently just flipped my first home and learned a TON!
Anyway, my question here is if you guys would/would not pull the trigger on this home.
I've got this:
Acquisition cost: $105,000
Renovation Cost: $12,000
ARV: $140,000
Vacancy Rate: 5%
Expenses: $655
I would be looking to acquire the property cash and then refinance when repairs are completed. Does anyone have any input of if this seems like a good investment? Again, this would be my first property I'm looking to purchase and rent out. I'm sure there is a ton that I'm missing so is there anything you would yield advice wise? A lot of the calculators I'm plugging numbers into show about a 7% Cap Rate and exceeds the 1% rule I've read about.
Any advice is welcomed and appreciated. Expenses are listed below.
Expenses are: Tax $325, Insurance $50, Maintenance: $100, HOA: 180 so $655/mo