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Updated over 4 years ago on . Most recent reply
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Double check my analysis of this deal
What do you think of this property for my first deal. SF 5 bed 2 bath currently rents for $1675 and leased through July 2021. It wouldn’t need much done probably just some light cosmetic work. I plan on putting 20% down.
Purchase $165,000
Rent $1675
Taxes $1400
Estimated insurance $1,000
Property management in this area is 8% plus one months rent for tenant placement.
Most Popular Reply
Greetings, Brian. If you are looking at the 1% rule, you're good; at least as a rough guide. As @Michael Lewis Lee aptly stated, lots of ancillary things to consider before one can say for sure if a deal is truly a good one. Have you used the BP rental property calculator yet? I think you get a few free spins before you have to join Pro. This will allow you to add in maintenance, capex, and other things I didn't see in your numbers. Another thing to consider is your down payment. If you're looking at conventional lending, I'm having issues finding anyone in my area to go below 25% on the down payment. That's speaking from the perspective of a newer investor with pretty strong financials. Might want to run those numbers with the 25% just to see if it still works for you. I would think Mankato is a good place to invest. Decent population and a college town, without some of the price inflation of the TC. Also, you mentioned it's leased through 2021, so hopefully your inherited tenants are not living the good life with the moratorium and avoiding rent. Just my thoughts, keeping in mind they are worth what you are paying for them! Good luck!