I am new to rentals and I am trying to analyse a property. Help!
Hello everyone, David here. I am new to rental properties and I could use some advise on how you figure out if a property is going to make money or not? I am quite sure I am missing something and I am sure what I think looks real good, might not be that good after all.
I would like to run something by everyone and see if I can get some input. Once I see how others do it, I will be able to figure it out. I am sure there are plenty of different ways and I am interested in hearing about them. Then finding a private lender, partner or financing.
Here is the property I am looking at. It is a 2bd, 2 bth condo around 1134 sq ft. It is a concrete block building built in 1984. It is well maintained and has a $230 monthly HOA fee. The property is kept in nice shape with the pool and club house located down by the private lake and has a nice view of it. Plus there is a dock with benches. The condo is centrally located and close to the local college and LegoLand. It is about 45 to an hour from Tampa or Orlando. I think I could pick up the property for about $42k to $45k. The expected rental price is around $850 to $950 a month. Taxes about $560 a year and insurance around $800 a year. The condo is in good condition and needs minimum work to get it ready.
With that information, could you do a good analysis of the property? I said I was new to rentals and make sure I put good deals in front of lenders. I do use a property management company for that reason. So I better figure that in there. See I knew I was missing something. LOL Thank you for your help!
Next question will be on property management companies and their fee's? What is the standard? Thanks for your help everyone!
David