All Forum Posts by: Jack Srimani

I appreciate any feedback. The realtor is pressing me for decision or else he says that I may lose the opportunity. However I wanted your valuable opinion here before I decide to buy the property. Thanks.

Hi,
I am trying to buy a townhome for 40000 dollars. The rent around the area of this kind is 800.
Tax is 2600 and insurance I am guessing is 500 dollars. I am getting a rate of (25 percent down) 4.3 percent for 15 years.
I would like to know if this is a good deal worth pursuing. I appreciate any feedback.
My desired cap rate is 10-15.
Thanks

Thanks everyone for showing various ways for accurate estimation of rents. Now I can do more accurate research bases on various methods you all have discussed. Regards

Hi,
I am in the process of analyzing a townhome. This is a three bedroom and one bath property. I am estimating the rent that I can have should I finalize the deal. I am using zilpy.com which states the asking price of 1200 while rentometer.com shows the 1200 price reasonalbe rent. However in the rentometer in the nearly places the rents are showing from 800 to 1000. This is confusing to me. My question is how do I accurately estimate rents for rental property for a particular area so that I am neither undercharging or overcharing. This estimation accuracy is vital for me to do my analysis of rental purchase for this property. I appreciate your help. Regards.

Thanks J Scott and Jon for more illumination of the issues I have raised. So I will give more thought to it before jumping into my decision about this property. To me cash flow is very important. Other things are impotant to lesser degree. Regards.

Thanks Eric, Jon, Joel and Stefan for the generous advise. Here I would like to bring a point which is sometimes overlooked in the analysis of rental property. Cash flow is one aspect of rental benefit. However this house was once3 230000 dollars. So if the housing market starts to come back say in 5-7 years (at least close to where it was before) then the appreciation of the house is something to consider. Also the fact the house is in a very desireable location with very school system is another positive. Third the house is just ten years old. So the maintenance in such houses are much lower compared to a fifty or hundred year old house. Are these point which I stated are something that should be in the equation of house analysis? I would like to invite your comments and correct me I am wrong. Regards.

Hi,
I have checked out a SFH in one of the suburbs of Chicago. This is a 3 bedroom and two and half bath house. The house is ten years old and is a short sale. The asking rate is 125000. The rent in this area for this kind of house is 1400 dollars per month. The home is very well maintained and no work is needed for renting it out. The tax is approx 3000. The insurance is approx. 700 dollars. The renters in this area is high end ones who are willing to pay that amount of money for rent. With this scenario does the fifty percent rule apply? Does this seem to be good deal? I appreciate any help.
Thanks.

Thanks Charles and Joel for the feedback. This gives me more insight to the current situation.

Thanks J Scott so much.

Thanks Scott. Yes it is a small company. What document should I request then to verify the rental activity for past three years. Thanks.