I have a opportunity to buy a townhouse. Here is the information on the property.
The sale price is $64,500 for 3br/2ba 1152 square foot townhouse.The same townhouse sold in 2006 for $124,000. The agent sent some recent comps that shows one of the identical townhouse is on the market for $116,000. The other townhouse sold for $85,000 in 8-31-12. Their is also another property that sold for $105,000 on 4-30-12 which is a little bit larger than the other ones. Also I was told that if the property don’t sell they rent for $1200 a month. Give me some input if you think this is a good deal or not.
Several things missing which impact the good or not deal.
What are the HOA fees per month.
What is the vacancy factor for the units.
What are the taxes per year.
How much is insurance per year.
Buying all cash or financing.
Location, location, location.
Gated or non-gated units.
Proximity to services such as malls, grocery stores, etc.
At your supposed rental, minus all the normal expenses, what is the ROI.
As to value, I bought a 3 Br 3 Ba, 1502 SqFt, tile floors in living/kitchen and baths, carpet in bedrooms. 6 year old unit, granite counter tops in kitchen and all bathrooms, originally priced at 189,000…for 52,500…now some of them are selling in the mid to high 40’s.
So without a lot more detailed input it is almost impossible to quantify your deal.