Analyzing an investment for cash flow
Dear Bigger Pockets members,
I'm looking for the homes around Syracuse. I have around 70K$ for this investment. Since it is going to be my first real estate investment, I focused on a healthy cash flow. I will start building my portfolio after experiencing and sustaining my first cash flow investment.
Closing costs
I always add 10% to the listing price as closing costs. Even it is generally listed around 5%; %3 for agent fee and 2-3% other closing costs, I always add 10% to be on the safer side.
Current Renter
I'm trying to focus on the properties with current renters. I know there are pros and cons for this but I want to start with cash flow and then start to research real market value for my property.
Property Tax
This one is generally 2-3% for the area that I'm interested in.
Other Costs
I would really appreciate if an experienced investor or homeowner lists me regular monthly or annual costs. Especially Syracuse is an area gets lots of snow. How much should I consider as exterior maintenance? Is there any fee regarding trash gathering etc? For the interior maintenance I'm planning to work with a handyman who would take care of any need.
Property Manager
This is second option for me to deal with all maintenance and rent collection. is it correct to have 10% of the rent for this? It would be easier for me to manage the property.
Thank you all in advance for your valuable comments and inputs.