Is this a good deal? I feel like I'm missing something...
https://www.biggerpockets.com/...
Thank you in advance!
$3,600/mo rent vs a $273k purchase price puts you in a pretty good position. How comfortable are you with all of the other numbers? Are you certain the property doesn't need a lot in repairs right off the bat? Management fee seems a bit low at 5% for a single family, do you have a management company quoting you that?
Hi @Elisha Young, the numbers look pretty awesome on this! I don't see the property in the analysis so it's hard to give a ton of input without that, but just based off of cap rate, cash on cash return, and cash flow from the numbers provided it would be a great deal. What is the rental strategy you are looking at? I see you're in Denver, but thinking the property must be somewhere else because I haven't seen a property for $273K that could rent for $3600. Would this be a traditional rental or some type of short term strategy?
Quote from @Ryan Williams:
Hi @Elisha Young, the numbers look pretty awesome on this! I don't see the property in the analysis so it's hard to give a ton of input without that, but just based off of cap rate, cash on cash return, and cash flow from the numbers provided it would be a great deal. What is the rental strategy you are looking at? I see you're in Denver, but thinking the property must be somewhere else because I haven't seen a property for $273K that could rent for $3600. Would this be a traditional rental or some type of short term strategy?
Hi Ryan, I am hoping for a traditional rental. I've looked at the crime rate and the population of the area has increased in the last few years. I do have a concern that there is a homeless shelter less than 2 blocks from the property. Not sure how negatively it will impact the curb appeal to renters, which is why I have estimated the monthly rent a little lower than the average...
Quote from @Taylor L.:
$3,600/mo rent vs a $273k purchase price puts you in a pretty good position. How comfortable are you with all of the other numbers? Are you certain the property doesn't need a lot in repairs right off the bat? Management fee seems a bit low at 5% for a single family, do you have a management company quoting you that?
Quote from @Elisha Young:
Quote from @Taylor L.:Hi Taylor,
$3,600/mo rent vs a $273k purchase price puts you in a pretty good position. How comfortable are you with all of the other numbers? Are you certain the property doesn't need a lot in repairs right off the bat? Management fee seems a bit low at 5% for a single family, do you have a management company quoting you that?
Not sure about the repairs, but will definitely look at that during a site visit. I was planning on managing myself and thought about 8% originally; was hoping to reserve an amount for a prop mgmt company just in case I need them down the road. Does 8% sound like a better/closer number I should be considering?