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Updated over 3 years ago on . Most recent reply
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Is this a good deal?
Hello. I have the ability to buy a 3/1 SFH in a 3 star neighborhood. It is mostly safe, but a bit messy. The home itself is nice.The purchase price is $83,000. This is the same price that it was when the current owner bought it in 2017.The renter has been there since 2017. Rent is $1025 and the contract runs through June, 2022. The renter always makes payments on time.It sounds like a safe move to me...according to my math, I should earn my $83,000 back in about 3.6 years. When I run this scenario through various rental calulators, though, it comes up as being a poor investment. Ideally, I would like to buy it and then sell it at current pricing (Zillow has it at $120,000) to an investor looking for passive cash flow/tenant in place. But perhaps this just won't work as the numbers don't make sense? I just am not sure.Any thoughs are much appreciated!