Updated over 10 years ago on . Most recent reply
Should I proceed with potential rentals?
I am interest in 2 very cheap 3bd/1ba properties in my home town. One is $20K and the other is $30k.
According to the rent calculator, the former, at $750 a month low end rent, should yield a profit of $190.
The latter, at $800 a month low end rent, should yield $140 a month.
Having not done a home inspect yet I am projecting a rehab price of under $15k for each. This is based solely by looking through the windows. Both appear to be in great condition with the $20k home seeming to have mold in the kitchen.
Both homes have been vacant for nearly a year and reside on a main street with about 1 car passing by every 2 minutes for most of the day with significant increase when people head to/return from work. Both are within walking distance of an elementary school and have off street parking. If I wasn’t in a one year lease I would not mind moving into the $30k one. Place has a huge back yard, about twice the size of the other.