Updated 24 days ago on . Most recent reply
First time LTR investor. Appreciate any advice!
I have been wanting to jump into the LTR market. I have a STR beach property that has been successful and looking for something more passive. My neighbor has told me recently he will sell me his home for $250k. He doesn't want to hire a realtor or deal with putting it on the market. He lives next door to me and had more upgrades, 2 car garage. My home is worth $280k. So conservatively thinking, probably worth at least that. My question is this, with current interest rates I don't think I will make a profit as a LTR. It should rent for around $1,600 looking at other comps. I have lived in this area for around 17 years. A+ neighborhood. Great schools. I have read Rental Property Investing and am trying to crunch the numbers as best I can but still not super confident. Any advice appreciated! Ashley
Most Popular Reply
Hey Ashley, With regard to your jump in to Long Term rentals; Although we all want cash flow right away, there are other items to look at. If you can cash flow or break even for the first couple years and look refinance when rates drop, you will be set up pretty good. There is also the appreciation of the home, Find a quality tenant to reduce turnover cost and aim for the appreciation play in the future!