SFR - Does this make sense?

[Keerthi A.]

I have never looked for SF Rentals till now. The cap rates on single family in my area is low. Just put a bid on a Single Family REO.

Does the numbers look right. Did I leave out anything.

It is not a bad neighbourhood, avg middle class neighbourhood near a train station. ARV is 110-120K after small fix ups. Just put a bid on it. Is it good to keep it as rental.

SF have low cap rates hard to manage, but no HOA, no rental caps, easy to finance and easy to sell down the road.

Please give your inputs on this.

[Jon Holdman]

@Keerthi A. read in the rental property and landlording forum about the "50% rule". That rule of thumb says expenses, capital and vacancy will eat about 50% of the gross scheduled rent. That does not include your mortgage payment, but does include the insurance and taxes. You can earn the PM's slice if you do the management yourself.

Yes, you can do your taxes with Turbo Tax. No, you won't get them correct. You'll very likely overpay. Find a good CPA or EA experienced with real estate investments.