I want to know what you guys think about this deal.
Asking price is $115,000 for a 3/2/2 SFR that's about 1,740sqft built in 2006 brick home. Its located in a very quiet neighborhood with a fantastic school district. There's plenty of shopping areas including grocery stores (like walmart and Kroger) and places to eat no more than a 10 minute driving away.
The rest of this is really just from Zillow. Property tax is known to be about $206/month, insurance $67/month.
I also found out the HOA fees are $300/year.
I think I can get tenants into this place pretty easily to rent for maybe $1100 to $1200/month
What do you guys think? Do I need more info?
@Morgan N. ..How will you fund the deal/rate? What type of repairs needed? Make sure to get inspection of major(roof, plumbing, electrical, HVAC)..Seems like a marginal deal with info provided..quick calculation..
What is the condition? Does it need a lot of rehab to make it rental ready, or is it already in rentable condition?
At first glance I am thinking 25% down, you finance about 86k on a 30 year note, your PITI ends up about 690/month. Are you planning on using a property manager or managing yourself?
If the house is in good shape already, I'd most likely go for it if I can get 1200 a month.
I'm going to ask my real estate agent to take a look at the place real soon. It doesn't look to be in any bad shape at all judging from the pictures. It might even be move-in ready. I plan to manage it myself especially since its going to be my first (I'd like to get the experience). I've gotten pre-qualified for a conventional loan from the bank too. And yes Jason is just right on how I plan on financing this.
if it needs no repairs...there are still better rental deals out there. assuming the house rents for 1% of it's value (ARV)...you can find deals with more equity and without HOA dues that will cash flow more for you.
Ok guys, I just lost that original deal due to it being on a contract just recently but I met up with my agent and we went to 2 homes this evening. It was my first time ever! looking at these homes puts me in a different perspective. This one home has 2 offers and is going to be submitted to the owner tomorrow morning. Asking price is $114,000. I'm pretty sure these offers come from investers and so my guess is that they are offering maybe 90 to even 85% of actual asking price! Comps around that area are pretty comparable at $110,000 average I think. HOA in this area is only about $150/year, tax last year was about $3000 due to great school district. same type of neighborhood. I am offering $105,000 with a $38,000 down payment to hopefully make the seller second guess any cash offers... do you think that's a notable offer?
My thinking is that if lets say you have a cash buyer offering 90% (or example) which is in the range of $102,600+/-, my solid $105,000 would not only look and sound better, but the high down payment might be nice. I know its not as high of a downpayment as 100% but if I were just a seller and were given the option of getting $102,600 now -OR- getting $38k now and then later getting $67,000 which is about 2.5k more by simply waiting another month... I'd take the 105 plus downpayment right? lol anyway I actually don't expect the seller to take my offer. I'm just playing with numbers and probability now.
oh and this is a 4/2/2 1540sqft, 2003, brick home. (yes 4 bedroom). I am wanting to rent it out for maybe 1100-$1200/month hopefully making maybe a 100-150/month cash flow and saving the rest for maintainance.
Correct me if I'm wrong, but essentially, you'd be spending 38K + CC to make $1200-1800 a year. Your cap rate would have to be in the 5-6% range.
You're cash flowing over $100 (and even that's very iffy from what I could figure out from your numbers)...but you'd be paying way too much to do it.
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