*This link comes directly from our calculators, based on information input by the member who posted.
Hello! I am buying my first rental property this year and was wondering if my calculations are appropriate. I'm mostly worried about underestimating potential costs - vacancy rates (as I expect turnover will be higher for 1bed/1bath units), etc. Aside from recommendations to NOT purchase in a declining area (I know it's a risk), I'd love any input on this deal or any input in maximizing cash flow on low-rent areas. Thank you everyone!
I have not yet seen the inside of this property but it was remodeled about 10 years ago (sale records indicate it was bought and flipped around that time) and contingencies would be in place to back out/adjust if the property has more than minor cosmetic improvements need.
The property contains 4 - 1bed/1bath units. It is considered to be in a declining area/city. However, there are a LOT of plans for revitalization and rejuvenation in progress ore recently created (creating jobs, bringing businesses to the area, creating programs with the local colleges to increase education rates and increase the pool of qualified and skilled employees - in the area of nursing, etc, for which there is currently a shortage in this location.).
I am hoping to offer the ability for tenants to use housing/rental vouchers (as it is a low-income area), but I'm still verifying if that is possible. Anyway, the closing costs were estimates provided by my agent.
Again, thank you for your input!
The link doesn't work
I thought it might be. Thank you for confirming that! I'll see what I can do to get it working.