Almost ready to rent my first income property..
I probably should have joined this forum a year ago, before I started looking to invest in an income property.
I bought a month ago and I'm now close to having the property ready to rent.
I'd like to submit the particulars of the deal for analysis.
Am I in the right place?
Most Popular Reply
By sales comps, the "ancient" past of 2007 is completely irrelevant. The rule of thumb is to find closed sales (not listings) in the last 6 mths and within one-half mile of your property -- preferably condos. Your agent can pull these numbers very quickly using the MLS.
Condo associations create a lot of unknowns and extra risks of special assessments and mismanagement, particularly when numerous units are vacant, as people have pointed out. If you can make $5-10K from flipping that would be my course of action, then find a better property.
Your cap rate (net yield on your 73K investment) will be a paltry 5% if you hold this:
1600 rent per mth
- 750 HOA
- 225 taxes/insurance (est).
- 20% of 1600 for vacancy, repairs, prop mgmt
=305/mth NOI
That's poor in any context. Please consider moving on.
Good luck, David