Brrrr, preforclosure, Love some feedback

[Jeff Mueller]

Hi y'all, This is my 1st time running the calculator. I would love some feedback to see if I missed anything. Pre foreclosure. The homeowner owes the bank 102K.  The comps I found suggest it would sell for at least 300K. Changes to lender costs/closing costs? Thanks

[Jaysen Medhurst]

@Jeff Mueller, a SFH with a FMV of $300k rarely makes a good rental as you'll never hit the 1% rule. Why? Because anyone who can afford $3k/month in rent can easily afford a $300k house. Once you get in the $120-150k range, rents start lagging the 1% rule and it's very difficult to cash flow. Some can still work since the expenses are lower than MFR, especially if the property is in an area with low taxes. I live in a very HCOL area. $2MM houses rent for $6-8k/month. Those properties aren't making any money.

But all is not lost! This may be a good candidate for a flip.