What would you do?

[Andrew Bosworth]

Seeking feedback on a property:

3 bed, 1 bath ranch, recent addition of a large sunroom, partially finished basement, 1/2 acre lot w/ mature landscape, quiet neighborhood.

Price: $91,000

Rent: $1,200

Monthly expenses: $550 (vacancy, insurance, maintenance, management and RE taxes)

Mortgage: $590 (assuming 100% financing, commercial loan)

Recent comps: $125,000-$130,000

Other than a few cosmetic items, property is turnkey.  Heating/cooling systems, roof, etc. are all recently replaced, so I would anticipate few maintenance issues early on.  Nice neighborhood, above average ranch for the area; I expect modest appreciation. 

What would you do....hold or flip?

[Joe Villeneuve]

Pass.  Less than $100/month cash flow on a property does not a good deal make.