Updated over 6 years ago on . Most recent reply
How's this deal sound?
The houses in my area generally rent for about .85-1%. The houses I'm looking at are about 1600-1800 square feet. 3 beds/2 baths. A house like this costs around 140k to 160k.
Let's say I get one on the low end and find it for 140, and only have to put in $5000 in repairs. This home will rent for around $1150 (I don't have to pay utilities). This is .82%. However, with 20% down, my monthly expenses will be about $725 a month including taxes and insurance. This will net me $425 a month or $5100 a year. Minus 1% of value for maintenance and that leaves me $3700 in profit.
Is this something y'all would go for even though it doesn't meet the 1% test, but let alone the 2% one?