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Updated over 9 years ago,
Evaluating Rental Property -similar cash flows, different age and location
I'm currently evaluating two buy and hold properties. Both are $150k asking.
Property A: Built in 2003. Comps rent for $1350. Near Austin airport. Cash flow $200 (no HOA and slightly higher tax rate).
Property B: Built in 1974. Comps rents for $1200. Closer to downtown Austin. Cash flow $150 (no HOA and slightly lower tax rate).
My gut reaction is Property B may end up costing me more in the long run because of CapEx/ R&M. The location of property A isn't as ideal, but the numbers keep telling me that it's the better investment of the two.
What does everyone else think? Is this enough information to analyze? Thank you so much for your responses in advance.