1) Add 20% rental vacancy rate to your formula, if you still see even cash flow with that, then it's a deal.
2) You should tell us where this town is, how remote that is, if it will enjoy demographic long term appreciation. Capital gain is still important. Rent increase potential is also important to project.
3) Local renter quality. Is it a slum? or in a okay lower-income area. You don't want to get into a slum, easy to get in, hard to get out.
4) Property management cost.
Couple of considerations
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Reply- I haven't fully explored the deal yet
-va_landlord-
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11/30/2007 postreply
11:17:58
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regarding property management
-montavista-
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11/30/2007 postreply
11:26:51
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Hmm! I need seriously talking with the seller
-va_landlord-
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11/30/2007 postreply
11:29:45
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Act now! Get the property under contract
-montavista-
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11/30/2007 postreply
11:32:34
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Prop management cost is a big wild card
-miat42-
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11/30/2007 postreply
11:32:04
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nod nod 还有很多未可知的维修费用
-芦苇葱葱-
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11/30/2007 postreply
11:35:14