Your insurance number looks a little low, especially if it includes flood insurance.
Do you have any local government inspection costs?
Do you plan to use a broker to market for new tenants on turnover? If yes, that will be a month's rent.
You have no repairs budgeted with your purchase. Be sure to check the condition of everything and try talking with the tenants to see if there is any maintenance needed. I feel it is better to catch the Memorial Day sales than wait for appliances to break. It is also a great way to build a relationship with your tenants, "I don't want to wait until it breaks on you..."
James, great advice. I will adjust my insurance numbers for sure. I put in 100 dollars for flood insurance, just not sure how much that would cost. I looked up the FEMA flood insurance rate map, let's just say, I was lost. I have reached out to an insurance agent to get a better number for the area. If the numbers work out, since the place already being rented, how would you approach it? Or better yet, what would be the magic number for you to pull the trigger on a deal like this? You're right on the cost of fixing, I have not seen the inside of this place, just going off of what I have seen on Zillow and realtor. I will schedule a tour for sure. Thanks for you quick response as well.
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