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Property has been on/off market for about 8 months - they seem to let the listing expire then relist it so the days on market is skewed. I haven't been able to visit the property. Should I be overly concerned with "AS-IS"? Repair estimate is a total guess as there are no interior pics available. Seems almost too good - what am I missing? Any and all negatives or concerns you might see would be helpful.
Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
7y
@Kimberly Vallance, too good to be true usually is. That being said, go see the property and do a thorough inspection to understand just what you'd getting into. "As Is" might mean the place is a wreck or that the owner just doesn't want to pay for any repairs.
Make sure you check that there are no open violations or permits on this property.
Regarding your analysis:
Management is low. Likely to be 10-12%.
Will you be responsible for any utilities like water/sewer or house electric?
Lawn care/snow removal?
Will you house hack? If so, your rent will be 1/2 what you're showing (but good to analyze as a pure investment). If not, you won't be able to do a low-down payment loan. You should expect to put 20-25% down.
Rental Property Investor · Bartlesville, OK · Member since 2019 · 52 posts · 24 votes
7y
Closing seems low. usually Ive ran into 6% for closing price then doc fees.
Low downpayment at a 5% interest rate seems rather hard to accomplish in this market unless your house hacking.
20%-25% down is normal for investment properties. a lot of lenders won't let you do 30 year or fixed rates either so that's where you need to do a lot of shopping.
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
7y
@Kimberly Vallance The As-Is aspect of the deal just means the seller won't contribute to or do any repairs etc on this sale-AKA pre-emptive negotiating. If the seller says repair estimate is 20k it is more likely 35k; and then there is that certificate of rentability you need to get-don't imagine that's too big a deal; but it could be.
The tenant class in these types of accommodations are typically much higher maintenance and way more wear and tear. Frankly this property does not have a lot going for it unless it hits your sweet spot as a landlord to this type of tenant.