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Updated almost 2 years ago,
Thoughts on this location/deal analysis?
Hi all! I am looking at a property that is currently fully rented out.
Location analysis: It's a commuter town, but it recently has a lot of construction in the area. A warehouse near the town opened up recently as well. 3% unemployment rate and has been steadily dropping, ~35 min drive to a bigger city, renters are higher than the state average (by about +9.6%). The assigned school for the location is a 7/10. My only issue is that it's heavily family (much higher skew toward married vs non-married) wondering if this may be a concern.
Deal Analysis: Currently rented out at ~$2050/month, ~$1,531 expenses (mortgage, taxes, insurance, variable expenses (total ~$638; vacancy/maintenance at 5% each, CapEx at 8% since it's an older house, 11% Property Management (using 10% as the average but including an extra 1% for turnover)).
Overall this would be ~1.4% using the 1% (or 2%) rule.
Is there anything I may be missing or any watch outs I should be concerned about?