Hello...would greatly appreciate experienced investor replies on a off market property we are considering:
2500 sq ft , 2 family, offering $204K
Comps have sold around 230k
Under rented at $1700 total rental income. Realistic monthly income $2200
CoC: 9,1 % Monthly Cash flow after conservative estimates for all expenses are considered: $424
The ConC is less than the 10% we've been looking for and we have been seeking over $500 in cash flow but there seems to be a good opportunity for equity here. The taxes are high ($420/month) which cuts into cash flow. This is in an area that has much development planned in the next couple years (shops/restaurants). Property is in good shape and will require no major capital expensive for some time. *We are out of state investors who would never live in this.
Thanks for your thoughts!
Two quick thoughts, from your write up it sounds like you are already sold that this is a good deal. On paper, everything seems to make sense and will deliver a cash on cash return north of 10% you get rents to market. Second, if you're out-of-state investor, it's always good to have boots on the ground with a friend or family member. Find someone locally who you can trust.
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