My offer was accepted to buy a 1000 sq foot ranch, with no basements or garage in a great rental market in metro Detroit.
Low end rent is $950
High end rent would be $1200
They agreed to an offer of 100k
We believed our Monthly cash return to be about $350 before our final mortgage and tax info came back.
We had some back luck on both ends....
We believed taxes would be about $2100 but it’s now $3200 And of course our interest rate jumped 1/4-1/2 percent.
So our low end cash would be about $200 a month. $150 per month swing.
Should we pull the trigger or get out?
Hey @Paul Sassin if you are confident in the location, building and the rental amount, go for it! $200/mo is still solid for a property only costing $100k
Thanks for the advice Jake! The house has a new roof and foundation is strong as well.
@Paul Sassin , re-run your numbers. I'm showing you ($100)/month if you can only get $950/month. That's negative. If you can get the full $1200 in rent, you're still only $60/month, which is way too low for me.