Buying & Selling Real Estate
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 7 years ago,
Evaluate first rental property investment
First time post but have been reading on here till my eyes hurt every night. Have a friend with a 2 bed 1 bath house willing to sell it to me for 30k. Current tenant has been there for 2.5 years and pays $450 a month (comp in the area is from about 450-550). Tenant pays all expenses. I walked through the home and it seems to be in good condition and the tenant (single man) keeps it clean considering what other 30k homes look like here. Central AC which looks somewhat new and works good. Reroofed in the past 10 years. Property taxes last year was $105. I'm not sure what insurance would cost on a home like this. I could pay in cash and looked into a loan but the 5000$ closing cost that comes with a loan really wipes out a lot of profit I feel like. So is paying 30k a good idea?
It's hard to know what market value is for the home because zillow can't provide me with much info but I see other homes in the area sell for 40k plus.
This is my first potential investment in realty. I've tried to run the numbers and it seems like it will cash flow but would really appreciate some opinions from more experienced investors.
Im 25 and not lookin to get rich overnight. My ultimate goal is to own about 10 rentals clean and clear in the next 20 years that would provide a cushion.