$950 Rental, $110k Price, 9/10 Rate School District - YES / NO?

[Sunshine Bizz]

$950 Rental, $110k Price, 9/10 Rate School District - YES / NO?

Guys, would love to get your feedback. Here is the deal:

- $950 Rental value

- $100k Cash Close

- 9/10 Rated Schools

- Low Crime

- New home (5 - 10 years old)

Would you buy it? Yes, ROI will be lower than if i buy a $40k property but these $110k property will be banks best friend from re-finance point of view.

Thank you

[Thomas S.]

It's an OK buy but only if you can refinance for the maximum amount and still see  positive cash flow. Do your calculations based on 40% expenses and a hypothetical 100% financing situation. If that still shows positive cash flow then it may be a potential investment.

There is no way it is a good investment if you have very much dead equity sitting in the property. Confirm refinancing before you go ahead.