The numbers tell a story. For this little investment if you can get that return then I would go for it, there is little capital involved. Just beware when you open the walls you open a bag of worms that many times need to be addressed if you are pulling permits(and I would pull permits, if you don't and something happens it would be gross negligence which may pierce the veil of protection of an llc, or void an insurance policy). A house for 10K may be a bargain or a money pit, get a very very through inspection before you even consider it.
The low tax info, high vacancy allocation, etc tell me this may be an area of some concern.
Have you visited the site personally? I would make sure it is an area that rents fairly easily and there are other rentals nearby that haven't been posted for more than a month. If you see alot of vacancy around the property there may be a reason for that. If the area is sub-par, I personally wouldn't do it unless you have a section 8 tenant and a solid local property manager that can assist with any compliance issues.
The numbers tell a story. For this little investment if you can get that return then I would go for it, there is little capital involved. Just beware when you open the walls you open a bag of worms that many times need to be addressed if you are pulling permits(and I would pull permits, if you don't and something happens it would be gross negligence which may pierce the veil of protection of an llc, or void an insurance policy). A house for 10K may be a bargain or a money pit, get a very very through inspection before you even consider it.
The low tax info, high vacancy allocation, etc tell me this may be an area of some concern.
Have you visited the site personally? I would make sure it is an area that rents fairly easily and there are other rentals nearby that haven't been posted for more than a month. If you see alot of vacancy around the property there may be a reason for that. If the area is sub-par, I personally wouldn't do it unless you have a section 8 tenant and a solid local property manager that can assist with any compliance issues.
@Rashaun Forrest appreciate that. It was a property i was looking at but I am just working on analyzing deals and ensuring im calculating the correct items i.e. not missing insurance or accounting for having to pay for electricity or making sure the percentage i set aside for cap ex is close to resonable. Really just looking for opinions on how to get better at analyzing. Thanks again for the information
Very good advice from Mr. Forrest! As a lender I tend to look at things at face value and from what I'm seeing it appears you may already be upside down in value. Sorry for being so direct! I highly recommend doing your due diligence. Make sure this is an area that grows equity at a steady rate to make the purchase worth doing in the first place.