Updated over 10 years ago on . Most recent reply
Looking at first rental property. Do these numbers look good?
Hey..noobie here. Looking at my first rental and was wondering what you guys think. Its located near campus of a state university. List price is 220k and rents for 2100. No central air though and floors look like it could use some renovation. Built in 1990. Tax 3400/year. I think insurance is around 220/month.
I did the numbers and cash flow is around 130/month considering 10% reserved each for capex, vacancy, and maintenance. If i follow 50% rule, it looks good. But CAP rate is only around 7%. Cash flow positive @130/month. So, which metric should be most important and reliable? Thanks all in advance.