All Forum Posts by: Jim Stanley

Thank you, everyone, for your replies.

I think I will be passing on this one.  I already knew I should, but it's good to hear from others as well.

Thanks again.

Hello- 1st ever post.

I've been wanting rental property for a while and am starting to educate myself.

My best friend has to move very soon and has offered to sell me his house at fair market value but with no realtors, thus saving me closing costs.  It is a nice house in Highlands Ranch, Colorado, a VERY desirable and stable area south of Denver.

I think it's worth $400k and could rent out (with very low vacancy rate) for about $2300/month.

Using not-conservative numbers in the rental deal calculator, the best I can come up with is roughly break even on the monthly income, but at least the equity would build.  Furthermore, it is a rapidly appreciating market (at least for now).  I think that as long as I roughly broke even each month, I would come out ahead if I sold it in a few years, getting equity and appreciation out.

I know I should have higher (at least positive) monthly income, but this feels safe, given the location. And, so far, I can't find anything else for sale that gives a positive income. Houses in my area are expensive and condos have outrageous HOA fees. I haven't tried multi families yet.

I need to tell my friend yes/no ASAP.

Advice/voices of reason are appreciated.

Thanks