All Forum Posts by: Yizhou Pan

@Yizhou Pan Not a problem, I'll clarify.  If you purchase the property for $170K it should rent for $1,700 per month(1% of purchase price).  So if the rents are at $1,400 and you pick it up at $170 chances are it's not a deal(0.83%).  Now if your strategy is an appreciation play, it may work, however under 1% usually mean that you may be breaking even or losing money every month.  However each deal is different and if the expenses are low you may be able to make some money on the deal. Hope that helps.

@Yizhou Pan 3 bed/2 baths are great but if you can find 4 bedrooms, 2.5 baths that will be more ideal. Even though I'm technically in a 3/2, the owner split the Master into 2 rooms making it a "4/2" which is why I was willing to pay $1600. Most apartment complexes out here go up to 3 bedrooms 2 baths so people renting are looking for bigger. But honestly, everything moves in Duluth quickly and the property values are on a steady increase. 3 homes have sold in less than 10 days in my subdivision which is majority ranch style homes. We currently have 2 more for sale but they are over your $170k budget or I would tell you definitely buy!

If I can be of any help, let me know. Especially if you find something you would like to know more about. 

@Yizhou Pan Try to get in at 1% or more.  Traditional wisdom suggest buying under 1% will make the deal hard to cash flow.  Is that's your strategy?  Additionally be sure to get into the weeds on any deal your analyzing.  Water bill, tax bill, insurance, cap ex, vacancy, property management, routine maintenance + debt service.  What do you want to clear every month?  In my market I can pick up 5 properties that will cash flow around $200 per door after all expenses.  Just my $00.2.  Persist and you will WIN!!!