Originally posted by @Weng L.:
There are fewer short sale or foreclosure in the market right now so I am thinking to buy move-in ready investment properties directly with 25% down payment and 30-year fix mortgage
If down payment and fees all together are $100,000, monthly expense total is $1900, monthly rent is $2700, turn-key new construction. Would you buy this property?
Is your "monthly expenses" total $1900 including PITI+HOA? (Principle, Interest, Tax, Insurance).
If so my basic formula with single unit is to include 1 month of rent for maintenance and 1 month rent for vacancy.
In your case would be $2,700 + $2,700 = $5,400. This bring your monthly expenses to $1,900 + $450 = $2,350. You will be cash flowing $350/month self manage. That is 4200/100,000 = 4.2% CoC. Since you said turn-key new construction, if coupled with high demand location, you may end up keeping most of the $ reserved for maintenance and vacancy in the first few years.
Your situation is similar to mine, saved up some cash and trying to invest while holding a full time job. Don't really have time to do BRRR. If are thinking turn-key, move in ready, investment property.. I can tell you from my experience bought turn-key condo in Valencia. Turn-key but not a new construction in high demand location = rent out the next day I got the key from Escrow. Only +CF a couple hundreds from $100k invested in down payment. Again, turn-key but mostly low CoC & slow appreciation, even self manage to make sense of +CF. Definitely not my best investment.
Since you have $300k saved up, look for MF(multi-family 6 units or more) and incorporate PM (property management) as part of expenses may make more sense. The only challenge is lending has been strict for MF many require 40% down (if you do not have MF experience or portfolio) due to covid19.
