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Updated over 9 years ago on . Most recent reply

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Kevin Booker
  • Flipper/Rehabber
  • Richmond, VA
10
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66
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Will this be a good rental investment?

Kevin Booker
  • Flipper/Rehabber
  • Richmond, VA
Posted

I'm fairly new to the whole rental side of investing so I'm a little confused. I have a deal that I came across a 4/2 1400sf SFH in a desired section 8 area that would rent for around 1k- 1150/month, purchase price would be 66.5k and taxes would be around 1200 annually with no more than 2500 rehab and ARV at 80k. Is this a good cash flowing deal? How is this calculated. If so what would be the max I could pass it to an buy/hold investor for?

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Adam Bartomeo
#2 Managing Your Property Contributor
  • Real Estate Broker
  • Cape Coral, FL
1,100
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1,810
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Adam Bartomeo
#2 Managing Your Property Contributor
  • Real Estate Broker
  • Cape Coral, FL
Replied

I ran it through a spread sheet that I use to evaluate my potential rentals. I assumed a lot of the expenses that weren't provided but it really comes down to if you are going to finance or not. No finance then it will cash flow just fine (but you will not be leveraging your money) but if you do max out your leverage then it will probably not cash flow. Any property can cash flow if you do not use OPM.

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Bartomeo Property Management
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