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Updated over 5 years ago on . Most recent reply

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Is it worth it? Buying a rental property over market value?

Posted

Hello Everyone! Need some advice. Looking to purchase my first duplex and came across one in a lower income area. Did some research and owner is asking $127K however based on tax assessment property is worth $80K. Home has been on the market for 156 days. Ran the numbers with a purchase price at $80K up to the $127K and rental income would be a home run at either purchase price. Does its make sense to purchase above the market value due to the rental income levels being so high?  Thanks!

Most Popular Reply

Account Closed
  • Rental Property Investor
  • Odessa, FL
113
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145
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Account Closed
  • Rental Property Investor
  • Odessa, FL
Replied

@Jennifer Presley-Sanders

tax assessments do not reflect the actual market value of a property you should not rely on that and you shouldn't rely also on Zillow's Zestimate. I would recommend you check comparable - similar properties in the area that were recently sold. 

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