Rental buy and hold in Topeka, KS - >10 CAP
The property is 1080 SF 3 BD 1 BA , built-in 2002, the appraisal 2020 is $73000.
Located right 2 blocks south of Washburn University.
I heard it is a rough neighborhood.
The condition of the house is livable, maybe, needs some cosmetic repairs (2-5k maximum).
The condition is close to https://www.zillow.com/homedetails/1210-SW-Lincoln-St-Topeka-KS-66604/77506157_zpid/? (this comp is within 1.2-mile distance)
I have an off-market offer to buy it for $40000.
Market rent is $600-750 (different opinions from different local realtors)
Conservative:
- 7% occupancy
- 7% repairs (maintenance and capital improvement)
- 6% management fee
- $600 monthly rent
- 0 appreciation
- $1300 annual tax
- $300 insurance
CAP rate is 10%.
Is it worth it?