So just wanted to know what some of you all thought of this deal for a buy and hold rental condo.
Purchase price: $105,000
Improvements to get it rented: $7000
Value after improvements: $120000
Monthly rental: $1150
I am using my Helco to make an all cash offer. I have not yet decided whether to refi this property or just pay back the Helco. If we just pay back the Helco, then the cash flow will go directly back into the Helco to pay off the loan. If I refi the property, then the P&I will be about $450 a month. All these numbers are conservative. My estimate for the improvements was only $5000 and I am sure I can get about $1250 monthly rent. Also, the vacancy rate I used was 10% but the area rents well, so I would guess that won't be the case. But this being my first investment property, I wanted to make sure I was conservative with my numbers. Just want to know if I am missing something or if anyone had any ideas. Thanks for all the help.
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