New to Real Estate Investing - Need Help
Hello, I am new to real estate investing. Would love to get opinions from the experts on a deal I have come across.
Here's the situation: I am interested in buying a 2 bedroom/1.5 bathroom townhouse (built in 2014) for approximately $250,000. The sellers bought this property in April of 2014 for $210,000. This area of my town is going through significant increase in appreciation in the last year. Properties are selling for over $100,000 compared to what the original owners paid and people are buying and getting out in 2 years (after they make $100,000 in profit). Homes are selling in 24-48 hours after being listed. I will spend around $20,000 to get into the property (down payment plus closing). I will be paying $1500/month for mortgage, taxes, insurance and HOA. I might be able to rent the place out for $1000-$1200/month.
I would love to hear from the members if this is a good deal to pursue? I am thinking that I will be making a return on investment through appreciation/mortgage pay down. Does that make sense? What else am I not thinking of?
Thanks for reading and for your assistance.