Hello everyone,
I am looking to purchase a SFR and I'm not 100% sure if this is a good deal or not. Also, I don't really know much about the seller other than he is part a meetup in my area and he has a investment company but this is only one of the the two listings he has. Lastly, I am not too familiar with the area aside from knowing that it is in a lower income neighborhood. However, I looked at rentometer, zillow and craigslist and they all support the rent below and potentially a little higher. Any help analyzing this deal would be much appreciate.
3 bedroom 1 bath.
$39999.00 Purchase Price
$11700.00 Annual Rent ($975 Monthly)
$1416 Yearly Property Tax
I'm not sure on insurance, I have to wait until tomorrow to get a quote. However, my triplex is roughly $400 per unit a year.
I'm assuming 10% Vacancy, 10% Maintenance and 10% property management (however I'll probably do the property management my self)
I've high balled the calculator on BP and I still get around a 20% cash on cash.
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