Too good to be true?

[Karlo Alamo]

Good morning!

I recently started to learn about rental investments. I've been reading and watching videos on everything that can help me succeed. I was practicing how to use the rental calculator so I could know how to properly analyze a deal. However, I think I'm doing something wrong because when I input the information about the property the returns are too high. I attached a link to the property to see how would you assess this deal. I live a couple of hours away, so I have the same resources as you, to put into the calc. So the ROI in around 26%... is there anything I'm missing? or is it just a very nice deal because of the size of the town?

https://www.zillow.com/homedet...

[Aaron K.]

1. It is in the middle of nowhere, it is a town of 900 people assuming you rented the units to couples you would be the landlord for more than 1% of the town.  Filling vacancies and finding new tenants may be very difficult, ask yourself who is renting these units, how are they supporting themselves financially.  If they are self employed why do they choose to live in this town instead of elsewhere.

2. I didn't dig too deep but it may be helpful to see what numbers you used in your calculations I didn't see what the units are rented for listed anywhere and it would be helpful to see your thought process