So I am at the point of really wanting to find my first property to purchase. I would say I am addicted to trying to find deals at this point. Here's a quick thing I put together and would really like to have some opinions, please take a look and give me any and all opinions you have. I like to think I know what I am doing, but please put me in my place if these numbers are ridiculous or anything I state is impossible, all honesty please.
2 Bedroom 1 Bathroom 800sqft home
In a nice neighborhood, good town, and access to NYC via train station in town
This house is for sale by owner or $199k
Let's say I get the house for $175k, 3% down payment which is $5,250 + 3,000 closing costs and whatever else = $8,250
Monthly mortgage payment, tax and insurance is now at $1,162
The house seems to be in great condition, with a new porch in the backyard
The houses surrounding are in the high $200k - $400k
I believe I could get $1700 a month for rent if not a bit more, considering many of my friends who have 1 bedrooms pay $1250 a month for rent.
I would not include any utilities since it is a single family home and after research I see that many of you include utilities only when you are dealing with multifamily properties.
So now I am at $1,700 - $1162 = $538 a month = $6,456 a year
If this is possible year after year with my investment of just $8,250 I would be very pleased
Here is the link to the home I am looking at
Good morning Kyle. I am not familiar with that area for rentals, so I went to rentometer and this is the result
Basically expecting to get 1700 is way high unless the property is above average and has a lot of amenities. I looked in the mls and it is a fsbo, so there were no pictures for me to review.
I looked at rentals for 2bd 1 ba in the mls, and active are asking 1550 but closed rented are 1450.
Don't forget to add in a vacancy rate. I also put in a number for property management...you may plan to manage it now, but for me if it does not CF when you factor in prop mngmt I stay away.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing