Very first investment property. Go for it?
SUPER cute/well kept 700 Sq ft 1br 1ba house. Outside bar and socializing area with 'workshop' (More like a room for washer/dryer/folding table, and to keep the beer taps stored in). Workshop POSSIBLY able to convert to a unit? (Haven't checked with city yet)
My idea is to rent it long-term for a year or two, and once things (hopefully) settle with COVID and rentals, I will Airbnb it out.
Debating whether to make an offer. (I have 10 days after accepted to back out for any reason, so there's that)
Pros:
1. Super cute and nice extra features
2. Private- surrounded with modern looking corrugated walls and has big automatic gate
3. Great neighborhood/location/social area looks pretty great!
4. The price is right for me/I can afford it
5. Turnkey ready to rent/I DO love that it's ready to go - easy first investment. (But then I don't have much room for improvement to get more rental income or to raise property price.)
CONS-
1. Awkward layout (Kitchen cutoff from rest of house) (Front door is not in inviting spot)
2. Bathroom is in bedroom- if I eventually airBNB, guests on sleeper sofa will have to go into bedroom to use it.
3. I CAN afford it but it will eat up pretty much all I have saved for investment at the moment.
4. Rental numbers aren't where I'd like them to be. Long term- 8%, Short term- 12%. (Would you go for these percentages? Am I being stingy?)
5. Price per sq ft is high for the area
Here are the numbers I have run on either the long-term or short-term. (Once I clicked on the link to share here I don't remember which one I used)
I am having to ask under asking price to get the price I mention, in order to make the numbers attractive to me. Asking is $137,500.
Thanks for your input!
*This link comes directly from our calculators, based on information input by the member who posted.