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Updated almost 4 years ago,

User Stats

27
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4
Votes
Jessica Long
4
Votes |
27
Posts

Analyze this property with me? DMV area

Jessica Long
Posted

Hello! My husband and I are entering into real estate investing. We are looking at this property to purchase as a rental. We will be buying from family and likely getting a gift in equity once appraised to cover the down payment. Here are the details. We've plugged this into our spreadsheet but want to see what more experienced investors think:

Our Goal: Some cash flow (ideally at least $100/mo. after expenses), good resell value if renting does not work out (ROI per year average*470.06%, Annual "cash on cash" Return on Investment 32.65% - this is without a property manager which we are planning to avoid)

MD, PG County area, outside of DC: 4 bedroom, 3 bath, single family. Little to no repairs needed (under $2k-most not necessary)

Local market-hot, like everywhere. Housing prices up pretty high. A few decent industries (medical etc...)

Deal: $365,000 (Price it has been estimated to sell publicly: min. $410,000+)

Right now planning 5% down but that will prob. go up once get gift in equity. 3.3% interest, closing costs are around $3k for the loan (no agent fees since buying from the owner directly). 

A few unknown variables:

Rent: nothing to compare it to in our area but it's been getting a lot of bites in my "market research" listing at about $500 above what we need for it to cash-flow (There is potential for expansion within the property-basement apartment option pretty good potential)

Management: We plan to self-manage but have made room in the budget for a property manager as a last resort)

Monthly cashflow with a property manager: $77.22

Monthly cashflow without a property manager: $567

Potential cashflow with additional basement apartment (before renovations): $992

What else am I missing? We would love for it to cashflow more with a property manager but the numbers are the numbers (still shopping around for other management just in case). Any thoughts on this deal? If it was just for the equity I'd say it's a no-brainer, but we also would like some cashflow from it.

Thanks for any tips-really new at this and ready to learn! 

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