@Nelson Taylor: Thank you for mentioning inspection. I will ensure that piece. Appreciated your input! feel little better pulling the trigger now.
@Anthony Thompson: Property is in really good condition with recently renovated, so I don't anticipate major issue, besides minor paint and touchups for that I am budgeting 10% of the rent. 10% vacancy and 10% management fee. However, this is my first rental property so I will be managing myself. I must admit, being new I don't know whole lots of Real estate terminology, so I did the basic math on a piece of paper and put the post here to get some advice.
My plan: I am putting quality work in the property, and I will be screening tenant myself, I am fairly confident that I can do a good job. I will try to get longer lease with attractive option such as no increase on rent Ever as well as surprise checks one in couple months.
Utility: Renters pays everything, lawn and snow care.
Neighborhood: C class, working class. definitely not a bad neighborhood. This will be buy and hold.
Rent estimation: I checked with two rental agencies and craigslist for similar properties which are going for 850 to 900 in the area. Since I am buying from the owner directly, I will try to find a renter before I finalize the offer( I may put that in my offer letter).
One thing I am nervous about is this property was bought and fixed and then I found it while driving around. So someone did the work already. Ten years ago, when I didn't know much. I bought a property a similar way, but, the realtor and investor screwed me over and I couldn't rent the property and I finally got rid of it on a short sale. That hurt my credit for long time as well as my finances and my confidence.
so what do you guys think about the plan, can you please suggest anything else I should do to reduce my risk?
Thanks.
M
