Potential Rental Property SFH, Doing The Numbers?
I was looking through some online listings for homes in my area (Boston) and found a nice little SFH w/ 2 beds, 1 bath, 4 total rooms in a nice neighborhood, but the list price showing is $319,000 w/ est. taxes of $1782/yr.
I can't check comps yet cuz I need to call the broker's office tomorrow to get the address, but just assuming I can probably wiggle down to $300k-$305k that would look like a mortgage payment of $1,550-$1,600/month (80/20 LTV).
Rentals for similar types of homes in this area are pulling in $2000-$2200/month w/ not much problem.
What other expenses do I need to factor in besides the annual tax payments into my monthly figures? (I'm aware of carrying costs during vacanies, etc). Most rentals in this area ask for first/last month and security.
I don't foresee huge problems getting 80% financing w/ a 695 credit score.
I was wondering about the same thing. There is a tool in the ToolKit on this site called a ProForma calculator. It is somewhat helpful, but lacking all factors. If anyone has a good check list of financial factors or a more all-inclusive calculator for evaluating a rental, can you please share it.
Kolette
There are a couple of good calculators out there. Our IP Ware software uses the following factors for consideration: Advertising, Legal, Trash, Power, Water, HOA, Property Management Fees, maintenance, pest control, common area maintenance, lawn care, pool, supplies, reserves, gardener, commissions and taxes.
Oops, I meant to post this to Birddoggin', not the LO forum.. Sorry...
The calculator is good...but also remember to get insurance..very important...plus the cost of any trust and or corporate entity you choose (I would definately recommend), will you be paying for any utilities (I wouldnt but some people do), definately vacancies, property management, repairs, advertising,
Remember...always think if you are paying too much and not renting out enough (worst case scenarios)..if they pan out to be good you are set.
305 is a huge jump down from 319...best of luck in the game of negotiations.