What am I missing? Analyzing Properties
Hey All,
I am only just learning and decided to go onto Realtor.com and analyze some properties. My initial thought is that I would analyze a few that caught my eye and all of them would be bad or maybe 1 in 10 would be viable. The odd thing is, all of the first three I looked at, I decided they were good deals, this makes me think I am analyzing incorrectly. Can someone point out where my line of thinking is incorrect?
Address: 258 Duer St
Link:
https://www.realtor.com/realestateandhomes-detail/258-Duer-St_North-Plainfield_NJ_07060_M63441-92548
Purchase Price: $270,000
Cost to fix up: I'm not sure, the kitchen in one looks nice at least, assume 20,000-40,000
Rent Price: I looked on rentometer and it says for a 3x2 in this city it would be around $2,200 so $4,400 total
Mortgage: estimating around 1800 with 20% down, an extra point for the rate and the full taxes
This would be a cashflow of 2600 (Is this real?) and a cash on cash of +35%
What am I missing?