The photo looks like it might be a condo. Is there an HOA fee, and is that included in this calculator?
Originally posted by @Dolly La Salle:
Hello. This is a rental property. The seller only negotiated $5k down their original price. By looking at the numbers, do you think it is worth the investment? I appreciate your feedback.
*This link comes directly from our calculators, based on information input by the member who posted.
@Kathryn Schauer Thank you, Kathryn, for your response. This is a townhouse with no HOA nor CDD fee.
@Dolly La Salle : who maintains the yard areas? What are the monthly utilities? Who is leasing the property, and are they charging a leasing commission?
Beyond that, it is impossible to tell the actual age and condition of the various systems. But, assuming those are shared walls, I would be concerned about how well your neighbors maintain their stucco and roofs. Their issues can quickly become yours if they aren't able to fix a roof leak that is coming into your property.
I would not be a buyer, personally, because the numbers are too tight, both in reserves and free cash flow. But if everything is brand new (including neighbors roofs and trim), I might feel a little different.
This does look tight. Same questions as Evan. Also what is the area like?
@Evan Polaski Thank you for your feedback. You're right about the yard. I started adding lawn maintenance into my calculations. I see that you can't always depend on the renters to keep up the yard work. After analysis and feedback, I decided not to purchase this property. There was not going to be much cash flow. I appreciate your time and feedback!