Will I even be able to rent out in an Expensive neighborhood?

Question

Hey all,

City: Villa Park, California

My uncle wants to sell my a property for 800,000 through seller financing and no interest. Market price is approx. 1.2 million - 1.6 million. Estimated rent: 4000-5000

Neighborhood property ranges from: 1 million - 2.5 million

So my question is, is it worth it to buy this property in this Class A neighborhood. I know the rent is approx. 4000-5000, but will i be able to rent it out for that much? If the tenants have that much money, wouldn't they be able to just buy the property themselves?

Or should I buy then maybe do some quick rehab and flip it?

Any advice/thoughts?

Thanks in advance

Brian Garrett · Answer

He's giving you $400-800k in free equity and also seller financing with 0% interest.

I can't believe you're even questioning if you should buy this unicorn once in a lifetime deal.

If you don't buy it tell your uncle to call me and I'll give him $825k for the property, lol.

P.S. This does not make a good rental you should definitely flip this one.

Dennis M. · Answer

Don’t rent it , you’ll just be frustrated and lose a lot of money every month . Sounds like a good Flip

Chris T. · Answer

Those are flip numbers.

For rental, you can use rentometer and zillow to get an estimate. If you want more accurate information, ask a realtor to pull you comps for a rental house with similar square footage, beds and bath located close to the property.

Some tenants may have some money but not the credit to qualify for a loan.

Your Uncle offering you a zero interest loan of $800K for a property potentially worth over $1 million. I think most of us here will take it all day.

Will I even be able to rent out in an Expensive neighborhood?

Will I even be able to rent out in an Expensive neighborhood?

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