All Forum Posts by: Heather Ippolito

I posted 3 days ago about a possible deal I was considering on a condo in my local market and you guys woke me up to it not being the best deal so thank you!

That one was $145k, rental income 1.2- 1.3k, 120/mo HOA apprx 1k/yr taxes

So new possibilities....

90% of renters in this area are military

I have 3 new prospects now - all SFH

First is $129k but I'm told very negotiable

House is in decent shape and move in ready

In decent neighborhood and closest to military base

rent 1.2k

taxes $987/yr

Second

In a nicer neighborhood, further from base but best school district

$139k

House is in good shape but would replace major kitchen appliances to get better rent

rental income 1.3 -1.35k

taxes $1100

Third

In a nicer neighborhood, further from base but best school district

$150k

want to replace carpeting with wood/laminate to get better rent

rental income $1.3-1.35

taxes $800

Any thoughts on these? House inspection hasn't happened yet.

We might be paying cash for the house.

Thanks!

Thank you for that input @Henri Meli! I am going to look at a few more houses of similar price in the area but with slightly higher rental income potential before going further on this.

Good point, thanks @Rob Green!

@Derek B. you may great points and I really appreciate you chiming in. I am definitely rethinking this deal. I'm still new to all this and learning. Just to answer your question, my husband and I are military and are currently living in this area in NC which is how I know the area and the rental situation. Sooo many military families are in and want to be in this town. The rental market is hot here.

We may do management ourselves but we also might be moving next year so prop management has to be on the table for us.

@David Kosiorek  renting is in high demand here which is one reason Im considering this. It is high renting demand from the military base a half hour away. So many military families looking for housing all the time.

@Devan Mcclish I figured in the HOA above.

So @Devan Mcclish you think it could go south by the place needing big repairs in a few years? The place was built in 2004. I do need to think about that. For my first deal, I'm ok with it taking 14 years to make my money back. I have the cash to put in there.

Yes I think  we would pay cash. I'm thinking it could be good for us as a first deal. Less work for us in a townhouse vs a house and a newer property feels safer right now in terms of repairs etc.

It's a townhouse in a great area in NC. 

Asking price $145

Can rent for $1200- $1300

Taxes $1250/year

Prop management 120/mo $1440/yr

maintenance on property 120/mo 1440/yr

no repairs needed

I don't think it is a fantastic deal but I think it is decent.

Can pay cash for the place

Any thoughts??