Updated almost 7 years ago on . Most recent reply
Recommendations on buying out of state rentals?
Is this a good deal or not?
Memphis, TN 39118
3:2 SFH
Built 1970s but full renovation to include roof, HVAC, floors and more costing about $35k in 2015.
Currently rented for $915. Market rent is around $950 to $995. Long tern tenant since 2016.
Listed for $95k
I Offered $78k
Countered at $82k today.
County website appraisal is $89k
Comps are from $69k to $100k
Rental income:
$915
Vacancy: $70
Cap ex: $70
Repairs:$70
Prop management: $75
Mortgage PiTI: $525 if accepted at $80k with 20% downpayment
Cash flow $100
Is this worth it?? First property btw
Most Popular Reply
Overall it doesn't seem like a terrible deal from just the numbers assuming the rehab was done well and you don't have to do any work on it. The cashflow isn't spectacular, but if you are budgeting $210/month towards reserves and still coming out with $100/month cashflow it may work for you.
I don't know much about Memphis as a rental market, so definitely do your diligence there.
@Ricardo Navarro gave you some solid information on the Memphis area.