Toss the rentometer numbers, they are useless. But if you feel you have some accurate local numbers then that is good. I would have a hard time understanding why someone would sell $1450 in rent for 35k. I would be a little concerned about hidden bombshells. Or that I really couldn't get the rent you think you can. Rather than meeting the 1% or 2% rule this is the 4% rule. You know what they say about things that are too good to be true...
I'm just confused. But then again, maybe I'm just jealous because I have never found a 4% rule property.
Your numbers look reasonable. The income to purchase price looks great. It makes me think the property is probably in a pretty sh!ty part of town. Is it? Why is the seller so motivated? Why would they give up $1450 in rent for a property that they have already remodeled. The expensive part is done. Where are you getting the income numbers from, the seller?
@Jacob Sampson I’m from the Cleveland area , it’s not in the best area but it’s not worst either if you get what I’m saying. Right around the corner from a popular Cleveland public Highschool. I got the income numbers from rentometer , I seen rent around the area higher then what I have listened per unit . The bottom unit I was going to rent to for $850 while I live in the upper unit and have a roommate who pays $600 in a room for rent situation. And I live rent free. Also I seen people charging more then $600 in a room for rent situation around that area.
Toss the rentometer numbers, they are useless. But if you feel you have some accurate local numbers then that is good. I would have a hard time understanding why someone would sell $1450 in rent for 35k. I would be a little concerned about hidden bombshells. Or that I really couldn't get the rent you think you can. Rather than meeting the 1% or 2% rule this is the 4% rule. You know what they say about things that are too good to be true...
I'm just confused. But then again, maybe I'm just jealous because I have never found a 4% rule property.
@JacobSampson I do have that same feeling , anytime I do practice deals. My numbers look to good to be true so I don't be knowing if I did them right or not. But also the Cleveland market is very cheap ! Especially if I'm using the FHA route with the 3.5 % down payment.
Toss the rentometer numbers, they are useless. But if you feel you have some accurate local numbers then that is good. I would have a hard time understanding why someone would sell $1450 in rent for 35k. I would be a little concerned about hidden bombshells. Or that I really couldn't get the rent you think you can. Rather than meeting the 1% or 2% rule this is the 4% rule. You know what they say about things that are too good to be true...
I'm just confused. But then again, maybe I'm just jealous because I have never found a 4% rule property.
Originally posted by @Cory Wallace: @CoryWallace yessir ! are a Cleveland Native , I know you would understand how cheap our properties can be out here.
@Ondrej Brown yes I’m familiar with it. John Adams is by 116th.