I'm looking to acquire my first rental property. Did my research, the numbers look good, but just wanted to get the people's thoughts before I go through with the transaction.
Repairs: $40,000 (contractor estimated $35k then I added another $5k to be overly conservative)
Total Investment: $53,500
Monthly P & L:
Prop. Mgmt: $80
Deferred Maintenance: $50
Profit per month: $406.42
So tell me- deal or no deal?
Thanks for reading and responding.
I would recommend you have a clear definition of scope and a fixed bid contract. That is a significant improvement. Change defintion should be built into the contract to handle the surprises.
@George Helms that is awesome advice. thanks!
Have you thought about managing the house yourself? I manage 9 houses with a full time job. While it has its stress moments it has been AMAZING financially. We have no vacancy, no management fees and are able to keep a great hold of our expenses.
Elizabeth Colegrove i do plan on managing it myself, but @BrandonTurner advised that i budget for property management regardless
What kind of neighborhood? A B C D?
I have seen investors go through and get stuck when they rehab a place nicely and then the tenant beats it up badly and they don't have the money to rehab again. Some investors will paint the sub floor vs. putting in carpet.
Not sure what you mean by A B C D?
Its a nice neighborhood a lot of recently renovated houses also a brewery is opening up soon
A neighborhood = the Nuckols Rd area of Glen Allen
C neighborhood = places off of Lakeside Ave
F neighborhood = Creighton Court projects
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