Does this property make sense? Cap 6%

[Rick Hoskins]

I made a offer on condo for 45k cash in central Florida but after fixing it up which would cost me 15k (Bath, Kitchen, New Flooring) and paying insurance, taxes, HOA the property would be at 6.27% net Cap.

Here are my number.

Purchase Price	$44,000.00
Rehab	$15,000.00
Total Investment	$59,000.00
HOA M/	$176.00
HOA Year	$2,112.00
Rental Fee	$350.00
Management %	10%
Management Company Year Fee	$840.00
Insurance	$700.00
Taxes	$700.00
Yearly Cost	$4,702.10
Rent /M	$700.00
Gross Rent Year	$8,400.00
Net Rent Year	$3,697.90
Net %	6.27%

I wondering if i should back out of the deal and look for a better return. Its alot of cash to tie up. Maybe i should look for single family house. This would be the 3rd rental property im buying. I already do own a unit in the same building. I just finished the rehab and will have it rented by the end of the week.

[Carlos Rovira]

I wouldn't buy a condo at a 6 cap. That's too tight for me, given the lack of control. The smallest assessment will kill your cash flow.