Richmond Property Analysis - Potential Investment

8 Replies

@Mike Celli

Unfortunately, this would be a losing investment even as you have projected it, and you still haven't factored in cap ex. Vacancy is also too low and very likely won't be achievable. Hopefully the next possible investment that comes your way will provide a better opportunity.

Cap rate is area dependent, so it may in fact be good based on that metric.  The cash flow of approximately $50/month however, I don't believe would be considered very good in any market.  And again, with your vacancy set so low and not accounting for cap ex, your projections and cash flow will look even worse once these are adjusted.  Cap ex alone will turn your cash flow negative from $50 to -$75 really quick.  I believe your property taxes may not be accurate either ($680 on a $215,000 property).  I could see these easily being $1,000 higher/year.

@Mike Celli  Is this property a duplex?  How do you expect to get $1700+/month in rent for a property located on 4th Ave?  I mean this respectfully, just trying to be sure your rent projection is accurate.  I could be thinking about the wrong part of town...

Originally posted by @Mike Celli :

Here is the link to the listing, let me know what you think:

 Well, looks like someone is buying it but that part of town is still pretty scary