New Investor to Glen Burnie, MD 21060

[Polly Brady]

Hello, I have been listening to Bigger Pockets podcasts and webinars for 6 months and the advice provided has grown my confidence to make the leap into the market. I have targeted my rental investment to Glen Burnie, MD 21060. Offers are being accepting for over asking price within 5 days of listing. My first offer lost to a higher bidder. I have a second offer out now which is up against multiple offers.

Any experienced investors in this zip code? Would love to connect and establish a relationship. Once I have my footing I would be open to partnering on future deals to increase the volume of rentals.

Newbie advice is always welcome. Thanks! 

[Ned Carey]

@Polly Brady my gut tells me you are estimating expenses too low. You are also not calculating cash on cash return correctly.

You have nothing for repairs, lease up costs, or turnover costs. Most management companies that I know charge 10%. Even if you get a lower rate they usually charge for the cost of finding a tenant. Often that is 1 months rent. Perhaps less for that high of rent.

Your cash on cash ROI is not expenses /income. It is the net bottom line cash flow after all expenses divided by the amount you invested. using your numbers you are investing $83,457. The net cash flow is $2424/yr. Your cash on cash ROI is 2.9%