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 almost 6 years ago,
First Time Investment Property Buyer - Help Evaluating Property
Good evening! I'm a newbie real estate investor and I'm hoping to get some opinions and feedback on the first property I'm about to put an offer on.
PROPERTY DETAILS:
Located in Madison, VA
2 Bedroom, 1 bath
Tax assessment = $129k
Zestimate = $134k
Listed for $125k (by a 401k Trust which I also don't understand)
Quick back story - I first became interested in this property as an AirBnB option in my small town. It's in a private mountain lake community with a small river-like view. The previous owners either used it as a weekend retreat or short term rental but I don't have all the details. They have only owned it for about 9 months. After crunching my numbers I don't think I could rent it out enough to really turn a decent profit (other properties are renting for $150-$175 a night but are much bigger/nicer and aren't maxxing out their calendars). It's small and cozy so I think it has more of a short term rental feel but I don't know that it would be profitable as such. So, I think I'm interested in renting it out long term or flipping it (my preference is a long term rental).
The property is in pretty good shape - new carpets and paint. It does need some new sliding glass doors, power washing of the deck, some potential floor leveling, washer/dryer and potentially bathroom upgrades. It currently has baseboard heating and split pack ACs that work well (but my family does HVAC so I could upgrade to central wouldn't be too high of a cost).
I attached a photo and I tried to attach my bigger pockets calculator PDFs of 4 potential sale prices. All of which came back with 12%+ COC returns and over $200 in monthly cash flow.
My questions:
Does this property make more sense as a short term (AirBnB) rental, long term rental, or flip?
At what price point should I aim for out of the four I attached? Or, do none make sense?
Appreciate any and all help and feedback as a newbie :)