Buy or pass on this town home.
Hello,
Here is what I got in front of me. Should I go for it or pass?
Thanks in advance for your opinions!
Contract for deed
Purchased -$76,000
Appraised -$90,000
Terms - 4.5%/30 years (no balloon mortgage)
2 bed/2 bath/ 1230 sqft
Turnkey.
I believe I can get $800 for rent. I talked with a few other landlords that have the same units.
Here are the numbers, please let me know what I'm missing. Maintenance is the one I was not to sure on.
Mortgage -$363
Taxes -$100
HOA -$50
Insurance -$55
Maintenance - $78 (10% of rent)
Property management - $78 (10% of rent)
Cash flow -$76
I believe everything else should be covered by the tenants.
Let me know your thoughts.
Most Popular Reply
Idk about this one. If you factor vacancy expenses, you will be spreading yourself very thin. You need to be at least $100 cash flow to make it worth your time and energy. Also, what happens if HOA cost goes up next year? I usually try and stay away from HOA because they can have some crazy rules and they can surprise you with costs . I like to be in 100% control of my assets.