All Forum Posts by: Jason Deck

Thank you to everyone who has replied so far.  I really appreciate your help.

NOTE:  I posted this earlier with a title "My First Deal", and when I didn't get any replies, I assumed it is because there are too many "first deal" posts on here.  So, I am reframing to get at my actual question.  :) 

Hello,

I am a new member, and new investor. I am seeking to invest funds I made when we sold our company recently. 

My sister lives in a medium sized town where I grew up. She is in a condo complex where she rents a 4br/3ba condo for $1k/mo. My stepfather lives in the same complex and rents a 3/2 for $900/mo. Both of them feel they have below market rental deals. My stepfather signed a long term lease 3 yrs ago, and my sister's unit is not very nice.

I went to visit this weekend, and there is a nice little 2/2 for sale, with distressed sellers, for $60k. I spoke to the realtor and could probably get it for $50k. The place is about 1000 sq ft, and has been nicely freshened up and seems to be in very nice condition.

So far, so good. But, then I see a nearly identical unit in the complex for rent for $650. Hm. Red flag.

I find it hard to understand how a 2/2 for 50 grand would not produce a solid CoC return if my family members are paying far higher rents in the same complex.

Here's the question: What rent should I trust? The listing I see on craigslist, or the reality of my sister and my stepfathers actual leases? Oh, and Rentometer says the median rent for a 2br within 1 mile is $776. So, again, what should I believe?

Thanks in advance everyone.

Hello,

I am a new member, and new investor.  I am seeking to invest funds I made when we sold our company recently.  (For those who will ask:  I have a new job with the group who bought my firm, so RE investing is focused on creating a passive income stream with the proceeds.)  

My sister lives in a medium sized town where I grew up.  She is in a condo complex where she rents a 4br/3ba condo for $1k/mo.  My stepfather lives in the same complex and rents a 3/2 for $900/mo.  Both of them feel they have below market rental deals.  My stepfather signed a long term lease 3 yrs ago, and my sister's unit is not very nice.

I went to visit this weekend, and there is a nice little 2/2 for sale, with distressed sellers, for $60k.  I spoke to the realtor and could probably get it for $50k.  The place is about 1000 sq ft, and has been nicely freshened up and seems to be in very nice condition.   

So far, so good.  But, then I see a nearly identical unit in the complex for rent for $650.  Hm.  Red flag. 

I find it hard to understand how a 2/2 for 50 grand would not produce a solid CoC return if my family members are paying far higher rents in the same complex.

Here's the question:  What rent should I trust?  The listing I see on craigslist, or the reality of my sister and my stepfathers actual leases?  Oh, and Rentometer says the median rent for a 2br within 1 mile is $776.  So, again, what should I believe?

Thanks in advance everyone.