Hi guys, there is a 4/2/2 SFR (1978/1900 sq.ft.) in Crosby, TX I'm looking at. Based on a quick glance on rentometer and craigslist, it seems like the rental for it would be around $1400, do you agree with that estimate? The after-repair cost is around $110,000, so it seems like a good deal based on the current prices in Houston area.
Alex, need more information such as vacancy rate, taxes, insurance, etc. The rental rate is for Crosby or Houston?
Sounds like you are doing your homework but not certain if the question is rental rate or do I have a good deal.
@Rodney Getsy The rental rate is what I'm mainly interested in, I've been comparing against other properties on the market over the last few months, so if my understanding of the rentals in this area is correct, I would be comfortable with the deal.
I factor in about 15% for vacancy and repairs and another 10% for PM, this property is in Crosby (a Houston suburb). The price I quoted includes rehab.
A general assumption for houston that it is a 1.2 market, so if your ARV is $110K, you may get between $1,300-$1,400/month.
It's not always the case, but definitely a starting point.
Not knowing the particulars, I think $1400 is probably in the ball park based on what's on the market in Crosby now.
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