2/1 Buy and Hold for Cash Flow.
Hi everyone, I am new to REI and new to my town though I did live here once before. My goal is cash flow, equity pay down. I also want to get my feet wet without getting in over my head with rehabs.
I have been looking for some other niches outside the 3/2 due to all the competition. Being new it makes it harder to find the best deals on these, at least until a network is created. I have begun to notice 2/1s. Sometimes the neighborhoods are D-ish and I try to stay away from those but I am finding some of these 2/1s in B-,C+ areas and some are listed at 45-55k(or less but with work needed) rent ready and rent for 650-750. Nice little houses I wouldn't mind living in myself.
Looking at it purely from a Cash flow buy and hold strategy I would like to know what problems I might be facing with these?
Possible higher vacancy? Anything else I should be aware of? In my area nice 2/1 apartments rent for 900+ and C/B- apartments are typically 700+.
I have searched around the forum as well and read quite a bit about these. I was hoping somebody could punch some holes in my numbers. The numbers are meant to be basic and each property can be evaluated on its own at a deeper level.