Possibly my first rental property. Does this look like a good deal?

[Hunter Reichert]

I found a townhouse for sale that I think would be a great first investment property. It is 2000 sq ft and is a 5 bedroom 3.5 bath. It currently has renters in it and to my understanding they will be there for at least 6-8 more months maybe more. Also the current rent is somewhere around 750-800 a month, I will find out for sure soon. There are no HOA fees and there I are no trash fees since there are dumpster in the neighborhood. The taxes are somewhere around 100 a month at most and I'm not sure about the insurance, I would imagine around 50 a month. There is a 20% down payment required and I would need to take out an equity line of credit on my home to be able to pay that. With all that said, does this seem like a good investment since there is turn key cash flow or not since there is more risk because I would need to borrow from equity on my own house to make it possible?

[Kathia L.]

Hunter Reichert

What's the asking price what's the true price
Does it need repairs factor in some expense for that whether it needs it or not most places could use some paint and updating which is minor. It could have more wrong with it that's unknown.
Make sure you're buying he prop is contingent on inspection so you can back out of the offer if you need to.
In inspection see about getting a camera to check the main lens pipes in the place if you can after reading the whole lateral belly sewer belly thread it's with it to find out up front.
Will the rent cover your expenses like taxes get recent years of county website check for liens what will your mortgage costs be ?
what are comps in the area renting for?

Who pays bills water electric gas etc?
How much will your total expenses be vs rent income ?
Tenant or landlord all these factor into expenses.
apply the 2%rule to get a general idea if it's worth it and most important will it cash flow?