I'm looking to invest in out of state property and would like to run the numbers with experts. I'm trying to find the balance between risk and reward. CoC return is not that high and Rent is about 0.9%, closer to 1% rule but on on lower side.
About the property: It is a duplex, Newly build so assuming no major capex expenses in next 10 years. Also expecting monthly expenses to be much lower. Current calculator exclude lease renewal fees of 70% of first month rent by property management. My current calculator assumes 7% vacancy rate and 5% capex. It also has 8% mgmt expense. Given I'm looking for buy and hold for over 10 years would you recommend this deal as good deal.
If I assume conservative 1% appreciation and 2% rent increase, I get around overall 9.5% return over 10 years. This may be feasible to achieve with S&P over that period.
FYI. It is a large scale duplex project by developer with around 40 duplexes in community.
Location : (OKC investor please comment about area if you are familiar with this)
