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The town home is located in a great school system in Chesapeake VA. It is in an
established and desirable community, excellent demographics... (employment, income,
etc...) close to all the shops, movies, etc... You get the picture.
According to my calculations, after 20% down and PITI my raw cash-flow will be $750.00 monthly! Wow! Great right? About a 30 % ROI
for me.... ALL IN! Property needs about 4k in finishes. Very light
work compared to what I've done in the past. But... it's a town home.
Which segue's into my next property.
Property 2. Located in a
transitional area in Portsmouth. Up and coming area near Naval Hospital and shipyards.
Blue collar neighborhood. Newly built and leased out apartment building (and I mean brand new) up
and running up the street fro the subject property. Spoke to the developer and they dumped 9 mill into it and future plans are to re-position it at 15million. .
Building 2 other building in the area as I type. Typical rents in Appt building
$1000- 1700 (2 bed-rooms- WOW!) Now for the contrast... Below average
school systems! Transitional neighborhood. Lower suppressed SFR
in the same zip code. Polar opposite demographics. More public
assistance and Sec 8 housing. Much more renters compared to the
Townhouse (mostly home owners.) I've invested in this area before and continues to profit All day long! It is not a bad area. I would live in
any of my properties with no issues! The sub. property is a Single family
home- and... TURNKEY! Excellent rehab! TURNKEY! Have an old tenant already lined up if I choose to move forward. Tired of renovating
homes! This SFH is a serious "yield play!" I'll be all in at $26K. The exciting thing is... I can cash flow
around $650 monthly and my ROI is still great, around 28%! I'm in on both at 20% down. House appraisals in this area are a little suppressed.
I already have a couple of town houses that cash flow pretty good. I guess I'm just partial to SFH.
Again... I understand Cash-flow is King and I can afford to be a
little more selective about where I want to invest and the townhouse is
in one of those areas.
Either Deal would work. Just can't get both at this time.