My First Deal: Student Rental
Dear Bigger Pockets community,
I am working on acquiring my first rental property. The property is a student rental located in the Midwest. I am from the Chicago suburbs and the property is 3 hours from my residence. I have been told my first rental should not be so distant. Based on my market analysis, the numbers are in my favor and work for this property. I was hoping to solicit feedback from the community as to any experiences or advice you may have regarding this. My objective would be to hire a property manager.
Here are the numbers:
Purchase Price: $90,000
Monthly Rental Income/Revenue (Based on past and current rents): $1,300
Monthly Mortgage: $365
Expenses (Includes Property Manager, Maintenance, Utitlityes, Property Taxes, Insurance and Other Misc.: $630
I have my Cash on Cash return at 17% which is higher than my ROI%. Based on this I am also meeting the 1% rule. The numbers do meet my criteria, but I want to make sure I account for other factors such as property management risk, risk of living far away, etc. I was hoping to solicit feedback/experience from anyone who has been in a similar situation or has a lot of experience. Thanks BP Community!