What is a good deal in the Boise area?

Question

Hello,

We bought our first rental in Meridian two month ago and I ran the numbers on the BP calculator. The House was built in 2007, 4bd, 2.5 bath, 3 car garage, close to Chinden/Ten Mile. We signed the first tenant with an 11 month lease after 7 days, using PM. The calculator says we can expect 4.64% cash ROI and 6.81% annual based on 5 years using a conservative forecast.

Is that a good deal, a bad deal or an average deal for the area?  How can we improve or can we?

I tend to focus on Meridian, but what about Nampa?

Is 3 bd, 2 bath, 2 car better inventory?

Love to get some input. Thanks

Dave Passey · Answer

Hey @Ryan Petersen, I have a house in Boise that we are closing on in about 2 weeks. It is just west of N Maple Grove Rd off of Ustick Rd. It is a 4/2/2 1614sf. What kind of rents could I be expecting in that area? What kind of home value could I also be expecting?

Ryan Petersen · Answer

@Michael G. That seems like it is about on par for the area and current market. Rents are higher the closer to you get to Boise and cheaper the closer you get to Nampa or Caldwell area. The same is true to home price though as well. Meridian is a great area to invest in and growing fast. You are also right, the optimal SFR is a 3/2 with a 2 car. If you are looking for some great SFR investment properties I'll send you a message with my contact info.

Ryan Petersen · Answer

@Dave Passey I would agree with @Matthew McNeil on the rent in that area. I would also say that you could expect around $130 per sqft in that area for an ARV in todays market. It is hard to tell you exactly without looking at the property. I would be happy to price the home for you and give some estimates if you would like. Just message me.

Dave Passey · Answer

@Matthew McNeil, ARV. That was what I was meaning more or less. I would like to BRRRR it so knowing what it might appraise for would be nice.

Matthew McNeil · Answer

I own SFHs in Meridian. You should be able to get $1600 rent minimum for what you listed above.

Sorry, what do you mean by "home value" if you are closing on it in two weeks?

Michael G. · Answer

@Ryan Petersen. Thank you for your response, please give me your contact info. I am interested in more opportunities.

What is a good deal in the Boise area?

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