Townhomes in Grayson Valley
Team,
I wanted to ask for your advice. I have 2 properties- under contract in Birmingham, AL ( both in the same area- zip 35235- B/C- area). The first is a 2BR/2.5Bath. The property is in a turnkey-key ( buying from a homeowner) and has some nice features like a patio and fireplace, and it's 300 sqft larger than the other 2BR in the area (1400 sqft- where other 2BRs are at 1000-1050). However, 2BRs in the area rents for $900, making this deal not attractive ( it has to be at least $1,000-$1050). If I use only "formal rental reports I got from my PM to set the rent, it could rent for $900-$950, but I feel I can get more for it based on its condition and size.
The second one comes with a tenant who pays below-market rent ($750, which should be $850-$900). I have a similar property in the area that I rent for $900). I think I will move forward with the 2nd ( got it at a good price, $85K) as I can always raise the rent at the end of the lease and, worst case, find a new tenant, but I am debating about the first one... contract price $110K, Taxes $700, Insurance $750. Any advice you can share to help me to make a decision?