Struggling making numbers work!
A little bit about my past investing. I currently have several properties that need pretty substantial rehabbing (full kitchen/bath remodels, added a 3rd BR/Bath to 1 property). I did all of the work except electric and a few plumbing items. These were bought cheap enough that I could do the math of the purchase, rehab and carrying cost and know that I was in a good position. they have stayed rented 100% of the time and on average worth double what I invest in them.
On to today! My wife, kids and my full time job doesn't allow me to to do another rehab right now. We decided to look at some "move in ready" houses that were within a couple of miles of our house. Great schools, great growth and the area is still fairly hot for construction and sales of existing. My struggles are making the numbers work!
The houses we are looking at are in the +/- $325,000.
Here is how I am looking at 1 houses.
Sales price would be around $310,000 (4BR/3bath, 2,634 sqft, built 2011, literally move in ready)
It rented prior for 2 years at $1,995
20% down $62K
Est. all in monthly cost $1,610 (mortgage, insurance, HOA, taxes)
These just dont work for me but I see where other investors are buying in the same areas and renting (based off sqft #'s) at around the same rate! How? Wheres the profit? What am I missing?
I might have to wait for some time to free up and just do another full remodel!!!