Investment property rental

[Tamatha Mallard]

Hello I’m trying to help a client purchase an investment property. Sales price $145,000. It rents for like $1450 a month. She wants to pay cash. It also has $320 HOA monthly expense is like 645. HOA taxes insurance. Add another $250 for operating expense. Is this a good deal?

[Cassi Justiz]

It's not super clear on what the cash flow is from the numbers that you provided. I would look at the rental income - all expenses to figure that out. Your client will also want to budget for property management (if they plan to use that), vacancies, and general maintenance/repairs. I personally wouldn't want to purchase a property in an area with that high of an HOA, but that's more of a personal preference.

Also make sure the HOA is landlord friendly, because if not it could make it very difficult on your client.