1st rental property showing a 35.75% CoC return.
Applied for a heloc today to start getting into my 1st investment property. The one I am looking at shows a CoC return of 35.75%. Its been on the market for 2 years, not sure why. I'm looking at it in a few days. The realtor says the units just need sprucing up and some exterior painting. All units are currently rented. Anything I should be asking during the walk through? The realtor said the seller hasn't accepted offers previously because they were too low, but calculating his asking price its still 35% return.
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If you get it under contract, definitely get an inspection. If it has been on the market for 2 years at a 35% return, there are probably some hidden problems with the deal. Know where the landmines are before buying.