Hi everyone thanks for reading. Below is the description I found online of a property. I'm
Working on analyzing it but I found something I thought the current landlord has missed. They are charging $590 a month which comes out to $7080 a year. They then state the $1409 taxes and $550 insurance cost for the year. They then state a net profit of $5121. It seems to me they are taking the total rent and then subtracting the insurance and taxes from the total rent cost. From what I've learned the taxes and insurance should be transferred to the tenant. Which would result in a higher return on investment when the rent is raised to adjust for insurance and tax cost. I'm very new at this but would love anyone's feed back on this analysis. Thank you in advance!
Great investment opportunity for beginner or experienced landlord. Two bedroom, one bathroom rental property for sale. Current tenant has been in the home since April 2013 on month to month lease at $590/month.
Not interested in land contract or rent to own buyers.
Annual rent of $7080
2015 non-homestead taxes $1409
2015 insurance $550
Net profit of $5121 per year/$27,500 purchase price = 18.6% annual return
Property features:
2 bedrooms, 1 bathroom, 770 sqft
Roof approximately 10 yrs old
Water heater new in 2013
Kitchen, utility room and bathroom flooring new in 2013
New gutters installed in 2014
Hardwood flooring in living room and bedrooms
Central air
One and a half car detached garage with automatic opener
