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Updated almost 6 years ago,

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Brittney Frick
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First Time Investment Property Buyer - Help Evaluating Property

Brittney Frick
Posted

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 :)

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