You are putting down 62k for a down payment but only expect to cashflow 175 a month? That's roughly 3.3% Cash on cash return not including closing costs or repairs. The cap rate is also listed under 6%.
Are you okay with that low of a cash on cash return? Is that cap rate normal for your area? It is cash flow positive, but I'm not sure I would purchase if I have to put down that much to get so little cash flow on the property.
There better ways to deploy that $62K than buying a single house that might cashflow at 2-5%.
Thanks guy, I appreciate the feedback. I’m buying in an area that has been appreciating at about 6% a year and I think it will continue to. All new builds in this area are $300k+ and there extensive plans to build highways to this town. If my goal is appreciation, does that change your mind or should I keep looking?
I never rely upon or assume market appreciation. It's icing on a cake.
If there is no built-in equity or a possibility of forced appreciation, I would pass on such a "deal".
Thanks again, guys. You’re right. I backed out of the deal. I’ll keep looking!