$1 Million Single Family Home Rental, Input Needed.

[William Coet]

Please note:this same post was made twice with different titles.  I attempted to delete the other one but couldn't.

These numbers are bigger than I'm used to for a single family home, and so I'm looking for some advice/help on this potential purchase. I would appreciate any suggestions for evaluating the strength of the market to determine the risk if there were a vacancy. As it sits the realtor is telling me that the current tenants want to renew the lease this April.

-The house is in a very good neighborhood in a growing city. The house is in very good condition and there is minimal deferred maintenance. It is a long-term rental and rent is 7,500/month (90k/year). I am aware of other rents in the area that are $8,000-$10,000/month (full disclosure; I need to gain more information on the rental market). The house has a pool and is located in a climate where freezing is not a concern.

-Sale price will be around 1,000,000.

-Property Tax will be 16,000-17,000.

-Property Insurance To Be Determined.

Thanks!

[Jay Hinrichs]

well a vacancy can be pretty costly unless you think it will basically always be in high demand. 

also being a 1 mil home one would suspect the finish's are top end.. so any where and tear there could be costly to replace.

a 50 dollar faucet could be 500 in a high end home  that kind of thing.

I am sure the buy and hold members here would probably advise you to buy some sort of small apartment with a million dollar purchase over one home.

Now unless you plan on living in it or something.. or maybe high end AirBNB