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Updated almost 8 years ago,
Areas with Lower Population
Hi Bigger Pockets,
First post! We're looking to make our first purchase in the next quarter or so. In addition to looking at numerous properties on Zillow, Realtor, etc. I've looked at about 250 on the MLS and picked out a property I'm very interested in. I say that not as an expert but as a rookie who's trying to gain perspective. I'm working through Path to Purchase now.
Triplex is listed in small town (1,000 people) about 20 minutes from a medium-sized town (20,000). It's an additional 25 minutes to a larger, job-focused suburb of Pittsburgh or 55 minutes going downtown during rush hour.
Property can be bought for about $65k and it grosses $1950 fully leased, which it is now (important to me starting out). LL pays all utilities, which seller estimates on SD as about $536/mo. For what it's worth, I estimated a tick over $500 so I don't think she's low-balling.
Sorry for the book, but I'm pretty high on the property, assuming it's zoned ok / inspects well. Out the door, I'm estimated year-round average of $1025/mo expenses out of current $1950 gross. Rents seem solid for area but I'm not sure about population size / tenant replacement. Does the more rural setting / utilities scare anyone off? Does anyone have any specific advice?
Greatly appreciated!
-AW