I have a number of properties in that area. It is a reasonable deal. As has been stated it aint the best area but most places in SW Topeka are just fine. It will rent for $700 no problem. That being said it is 5 blocks north of Washburn U not 2 blocks south.
I would not buy that house for that much in that neighborhood. If you go on the other sides of WU, it’s much better. To the East and North it’s bad. To the south it’s good and it’s stellar to the west.
I would not buy that house for that much in that neighborhood. If you go on the other sides of WU, it’s much better. To the East and North it’s bad. To the south it’s good and it’s stellar to the west.
Sara thanks for the response. What is the fair price for the such house?
Vacancy is typically 8%. Higher in worse neighborhoods.
Capex and Repairs are usually 15% combined. Again, higher in worse neighborhoods.
No way you're getting management for 6%. Will be 10-12%.
Without financing, you may be able to cash flow $200-250/month. Trouble is that's only 6-7% CoC ROI. Not good enough for me, but if you think it will appraise closer to $70k, might be worth digging in a bit more.
I have a number of properties in that area. It is a reasonable deal. As has been stated it aint the best area but most places in SW Topeka are just fine. It will rent for $700 no problem. That being said it is 5 blocks north of Washburn U not 2 blocks south.
I would say look at the recent solds and expect a fairly large decline in the market in Topeka and it will stay that way for a long time after this covid. If you are in it for the long term, they may be a good house for section 8 and pick a good rental management company. I manage my own in Topeka, but I think there are a few good companies.
I have a number of properties in that area. It is a reasonable deal. As has been stated it aint the best area but most places in SW Topeka are just fine. It will rent for $700 no problem. That being said it is 5 blocks north of Washburn U not 2 blocks south.
The ideal is to stay south or west of Washburn university. So your home is not in the best location since it is north east of WU. Nevertheless, assuming you don't have to do much work it is probably a reasonable deal at 40k.
When my wife and I bought our business in the fall of 2017 we lived in a furnished apt for a couple months about 2 blocks from there at Fillmore and Huntoon - I didnt think the area was that bad - the park to the south of Holiday park my wife said she'd see tweakers sometimes and people smoking pot (which I think should be legal) and during the day you'd see the occasional tweaker or person suffering from what appeared to be severe mental illness - which in my opinion is normal anywhere in Topeka - My outsider perspective living here going on 3 years now.
***These comments are based on your comp - like anything you go 1 block or a half a mile away things can drastically change, so 1.2 mile radius who knows what you are dealing with)******
Anyways the neighborhood is kind of cool IMO - I'd walk through there during the day and felt fine - the Holiday Park is pretty cool as well as the apartment building near it. That area will never be what I'd term Prolific like similar areas are in Wichita and KC for example IMO until Topeka cracks down on Tweakers/Meth use and Homelessness/Mental Illness. Until they address that problem head on the whole town will be dealing with that crap. Wichita came up with a homeless task force and after they did that I noticed some improvements -- it was still there but they were helping people and not creating problems - I dont think Topeka PD or govt has the same attitude - though I did just read they demolished Tent City this past month so maybe that will help.
Anyways I wouldn't be afraid of the area and would think you could get a quality renter outside of Section 8 -- -I dont know much about the section 8 program - so my comment is based on my bias. I'd think a clean well taken care of place to live for $500-700 or whatever your rent range would be...would be no problem to find a good tenant -
We lived the life of renters for a year and a half or so for the first time in our lives and quality rentals that are reasonable in Topeka is akin to winning a lottery ticket -- if you can't tell I was quite discouraged and very disappointed most of what's available if it was nice went immediately for ridiculous prices and most of the rentals were garbage for what was charged.
My perspective comes as a home owner the instant I moved out of my parents house at 24 and then starting to own rentals at 26 and having never rented - so I'm probably again suffering from bias and a jaded perspective having been forced to rent. All I know is that quality rentals in Wichita for reasonable prices are easier to find. The market here is very different.
Maybe that will change given the times we are in - I dont know.