Help me analyze this deal

3 Replies

$2,000 for rent seems a bit generous at first blush unless this is multiple units, also I'm not an expert on taxes in Prescott but half a percent of purchase price and a quarter percent of ARV doesn't seem like it would be accurate. You also have $0 allocated for repairs, maintenance, and capex. Also after looking it up it appears that it backs a busy road under some big powerlines in a semi-commercial area, none of which is going to be good for ARV.

Houses around here are selling fast, so I don't think you would be able to get the house price down that low. I'm a bit surprised that it's been for sale that long.

It's just down the street from the heart of the town which is nice. It is also next to a major street so it can be a bit noisy. 2k rent might be a little high. I would think more along the lines of 1,800 would be more appropriate.

Property tax is fairly low. I pay about .5% on my houses here.

What repairs do you think will need to be done? Contractors here are not cheap and it can be hard to find a good one.