Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
6y
@Josh Pitts, while the numbers look good, use caution. This is not a good area. That's easy enough to tell from the photo, Google StreetView, and the Trulia crime map. Not sure if you adjusted your number accordingly, but your pro forma expenses are very high compared to my standard numbers.
Here's what I usually use:
Vacancy: 8%
CapEx & Repairs: 15% combined
Management: 10%
In your analysis, there is no budget for initial repairs. Based on the area and that the listing says "AS-IS," there will definitely be things that need to be addressed. You should include something in your expenses for water/sewer and lawn care.
The sales history looks very weird. Sold in Nov. 2016 for $45k, then a month later for $99k? Now they want $135k. Has Jacksonville, this area specifically, appreciated that much?
@Jaysen Medhurst Thank you for taking the time to look over this deal. You make some great points and we intentionally inflated the numbers for CapEx & Repairs due to the "as-is" verbiage.
Still new to analyzing deals and having folks like yourself provide additional insight is very helpful.
Rental Property Investor · Fremont, CA · Member since 2020 · 16 posts · 11 votes
6y
The property tax listed seems very high... I believed the tax rate in FL is just below 1%. This still does not yield very good cash flow, but I'm not familiar with the area to know how it appreciates over time, but looking at the value of the property, it does not look like a crazy hot market either. I would probably keep looking for something that has better cash flow. But that's just me...