Question about my 1st Cash Purchase / Investment Property
I am new to Real Estate investment , I have been looking for a deal for several weeks now and I think I found one , I would love to have your opinion about this. I don't have a good credit score because I went thru business bankruptcy and had few personal guarantee so it effected me personally etc. etc. I solved it but I lost my credibility and it will take several years to fix it.
I will purchase this place cash to generate passive income.
The apartment is $175K 2 Bed 1 Bath
HOA : $300 a month x 12 = $3600 a year
Tax : $1400 a year.
Insurance etc. :$100 a month x12 = $1200 a year
Option 1
If I rent the place 12 months contract , it rent for $1,650 a month.
$1,650 x 12 = $19,800 - HOA,Tax,Insurance = $13,600 NET
Option 2
If I rent the place month to month , it generates $2,400 a month.
$2400 x 12 = $28,800 - HOA,Tax,Insurance,Internet,Electric etc = $21,540 - $4,200 Management Fee = $17,340
Option 3
If I do Vacation rental with Property manager cuts %30 and gives me %70 which is $25,000 After all the expenses.
The property value would go up to MAX $205K-$220K in 5 years.
I really will appreciate your opinion on this..
Thank you,