Is this a worthy SFR purchase? Tenant occupied as well. Thoughts?
Hi Everyone!
Long time listener...first time caller. First post here!
I
recently purchased my first rental in houston and am looking at another
one as well. I own my mothers house, have a rental down the road and
another 3/2 SFR with a tenant paying 1650 a month is up for sale for
200k asking.
Taxes are about 4400 lets say. Flood Insurance
700ish and Insurance is about 1000, HOA is about 400 a year. Lets say a
purchase at 208k with 20% down.
This would be my third property in a half mile range. I like this area near the woodlands, TX. Close to 45.
What
I am curious about is if this is an attractive spread for cash flow vs
other SFR around this area. Im expecting to receive about 3000k a year
(250 a month) on top of having a maintence fund of about 1500 a year.
Is
this a normal amount to receive, not worth the investment, better
opportunities in similar areas for cheaper or more income amounts?
Thought I would ask and thank you for your help as this is my first
post!
It doesn't meet MY goals. You didnt say anything about financing other than the 20% down. If I use generic numbers, I have this breaking even every month IF you manage it yourself. If you think it will experience some great appreciation over the next few years, then it would be just ok. I would avoid this one or try to get the price dropped about $30-40k.
The location is great but I wouldn't buy it. If you have 20% down I would look at stuff under $160k. Also, something to consider, once you purchase the city will adjust your property taxes closer to your purchase price so take that under consideration when you crunch your numbers.
Congrats on building your portfolio
Best of luck
