$280,000 house that rents for $2,500 Worth Buying?

[John Friendas]

There's a house I'm considering buying with a business partner as an investment rental. It would rent for what I assume $2,500 with one renter or $3,100 if I did rent by the room. It is an old house but has been completely gutted and rennovated in a Midwest state with a flatline population growth. It's near where I live though. Based on its price and rental income do you think it is worth it? It is a considerably good price considering the area, I'm just not sure on whether the rental income is worth paying for.

Apart from about $10,000 it is fully rennovated and ready to be rented out within 2-3 months.

Thanks for any advice!

[Bill B.]

$280k home for $2,500 rent is a personal choice. Is it better than your alternative uses for your money? How bad is the insurance, how high are the property taxes, is there an Hoa, etc etc. 

But…There’s ZERO chance I would rent by the room for $600/months more. I ASSUME you’re talking $400+ in extra expenses for providing water, power, sewer, gas, internet, communal area cleaning, and exterior maintenance. So you’d be hoping to make $200/months for dealing with 3 x as many tenants, vacancies, tenant on tenant conflict, late payments, etc etc. .