Minimum Rent
I have a property identified for potential purchase.
1920 2bed/1bath new roof, pipes, water heater.
Nice wood floors and woodwork throughout.
Comps support 24-27valuation
Asking 16k
Rented at $550
Taxes $780/yr
Taxes $400/yr(est)
Management $75/month(prop. manager's min.)
Distressed sale, needs "no" work, tenant in place.
Planning on no money down 15yr loan at 6%
This deal passes the standard rules of thumb: 2%, 50%, 70%
It fits my strategy of not wanting a bunch of debt long-term (I could pay this off pretty quick)
I have some other(3-4bedroom) houses nearby that stay occupied. It's not he best neighborhood, bit it's certainly no war zone. (there is a section of town that houses go for 5k)
What are your thoughts on the deal? I like the house, but I think sometimes with fixed costs it's hard to make money with lower rents.
I do long-term buy and holds.