Rental Analysis

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As some know I mainly flip. But a buy & hold friend of mine has a property he just picked up he needs out of ASAP. No real room to flip. But rental numbers look interesting.

Single family 3/2 1128 in California. Lower income area. 1978 year home was built.

Sale Price 120,000 - needs 5K work.

If you put 25% down. Assuming 4.5%

1.25% property taxs

$40 a month insurance

Your payment all in is PITI = $700

Property was last rented for on MLS for $1550.

Thoughts. Seems to hit the 50% rule.