All Forum Posts by: Mark Romanski

Prices definitely do seem unrealistically high and over-inflates right now. My fear is with all the trillions the Fed is printing, will inflation kick in and just keep driving this DFW market up? I am also on the sideline waiting but would love to hear someone else’s thoughts on this. 

@Keith Kellermeyer @Account Closed Thank you both!

@Account Closed Thanks for this! Yeah, I would run property management myself since it will be my only property and that would help save some of that expense. 

I would save for vacancy and repairs as well but agree my cap-ex could probably be low since it is brand new. 

With taking those into account, does this seem like a good first deal or would you rather wait for something else to come across? Just looking for expert advice to consider, thanks!

Hi BP, I've been hunting for my first rental property for awhile now and been running calculations on this but keep wrestling with it in my mind.

This is in Denton, TX (2 universities in town)

New construction Townhome - $210k (3 bd, 2.5 bth, 1,670 sq ft)

I've had rental comps run in the area and for other townhomes renting in the complex and they are renting around ~$1,750.

20% Down payment - $42k

Income --> $1,750

Expenses (including principal, interest, HOA, insurance and taxes) --> $1,424

Cash flow --> $325

CoC ROI --> 8.63%

My biggest concern is this doesn't meet the 1% rule so I don't want to be paying a lot more than I should. However, being my first rental property I love the idea of starting with a townhome because it will be an easier way to start (the HOA takes care of everything exterior plus this is new construction so everything will be brand new). I also like the fact that this is in a busy college town so I figure occupancy will be good here. I'm just really excited to get my first rental property and start compounding from there but I don't want to be rushing into an over-inflated market.

I appreciate any advice on this!