I have this property under contract in Memphis TN. The average 1 bed 1 ba rent in that area is $500.
Tenants are currently at $400 on no leases. We will need them to sign a month to month lease before close with the pre existing owner.
We have our inspections coming in this week. I think its a decent cashflow option. Will need to purchase cash and then refinance out into a long term loan.
What are your thoughts about this property and the numbers?
I just did a second analysis for you. Numbers still run well. I advise you to always run the purchase price 5k more then what the listing says - 10% for vacancy and 10% for management - $600/door for taxes and always put the rents $150 less then what the average rent in the area is. This will filter out 99% of the properties that you analyze, although, when you find deals that run well with those numbers, go back and realize that you'll be getting $1-$200 more per month in cash flow.
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