[Calc Review] Thoughts on this cheap Indy deal?

[Rachel Grunn]

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*This link comes directly from our calculators, based on information input by the member who posted.

[Ric Ernst]

@Rachel Grunn I think you are far too optimistic on this one. Mars Hill is not a great area. Not that you shouldn't invest there...just you don't set your expectations too high. Rent on a 1 bedroom is probably going to be more in the $500 - $600 range and a 1 bedroom (or even a 2 bedroom) in that area is going to turn over quite a bit. Property taxes on a rental are going to be around 2% of assessed value so you may be a bit low with $600 per year. Typically you need to own the property for 6 months before you can refinance not 3 months and ARVs on C or D class properties can often come up way short of what is anticipated. Again, I am not suggesting you run away from this one. Just don't expect it to perform as well as your calculator says.

One more piece of advice...if you are investing in C- / D areas and you install air conditioning, make sure you chain the condenser down. They have a habit of walking away from vacant houses.