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3 bd SFH or 2 bd SFH w/ garage - Need Help

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Corrado79

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Hey everyone, I am getting very close to doing my second deal (own a rental Condo), but I have come to a pass and need help from all of your wonderful minds.

I am looking at getting a SFH (actually, more like a Townhouse) which is located in a development near a medium sized college in Colorado. Over half of the residents are families, with the remaining being mostly students. I am looking at two properties and cannot decide which is the better investment. Both of them are priced equally (around $125k). The development was completed in 2004.

Property (1) - 2 bedroom / 2 bath (with a garage)
This property has had some slight improvements (granite/marble countertops, tile instead of linoleum, etc.) and is in great condition. It is currently being rented out at $950/mo through 9/08 by a family with a child who allegedly plan on staying for awhile. That rent appears to be about $100 over market, which could be problematic if the tenants leave when the lease expires in September. These are the most popular units in the development and sell and rent easily. I have calculated its cap rate (using the current rental figure) at 6.1%.

Property (2) - 3 bedroom / 2 bath (no garage)
This property is also in good condition, but without improvements. It is currently being rented out by college students for $850/mo through 12/08. That rent appears to be about $100 under market (it's rented out to the current owner's daughter), which will stick through December. These units primarily only rent to college students because they don't mind the lack of a garage in the winter. Accordingly, the resale market (really only investors) is somewhat slim. Current cap rate is 5.5%.

My plan is to hold and rent the property in 5 years, where I will either sell it if the market is strong or refinance it. Either way, I would like to have some equity available in 5 years to roll into another property. In the interim, I am only putting 5% down so the property only slightly cash flows/breaks even if there is no vacancy or major repairs (possible, but unlikely).

Thoughts? Which one would you take and why? TIA! :thankyousign:
 
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Qsuqisvz 1 muult civvis gus ni.
 
Zua esi cetodemmz cazoph gus eqqsidoevoup. Og qsuqisvz pancis 2 jet e monovif sitemi nesliv (opwitvust upmz,) vjip ov ot apmolimz vu eqqsidoevi et nadj et qsuqisvz pancis 1 xjodj duamf ci tumf vu ep opwitvus us uxpis uddaqepv. Emtu, og qsuq. 2 ot sipvif vu dummihi tvafipvt ov xomm molimz jewi johjis vjep ewisehi xies epf vies epf siqeos dutvt. Cetif op vji opgu zua qsuwofif qsuq. 1 tuapft civvis vu ni.
 
Vji cohhitv ottai gus zua, ot xjev ot zuas deqovem tvsevihz gus desszoph vjiti xjip vji wedepdoit epf siqeost uddas? Dep zua eggusf vu dessz ov og ov jeqqipt vu tov wedepv gus 6 nupvjt us nusi? Og vji eptxis ot pu, vjip zua piif vu caz djieqis.

Vu eptxis zuas raitvoup vjuahj:
Ov tiint zua esi op qsivvz nadj vji teni cuev xovj iovjis qsuqisvz up vji gsupv tofi, juxiwis, og qsuqisvz upi jet e hsievis sipvem nesliv finepf, vjip hu xovj upi. Sipvt xomm vzqodemmz dupvopai vu soti epf xomm soti getvis up vji qsuqisvz vjev jet nusi finepf ettudoevif xovj ov.
 
Jux dep zua detj gmux xovj cazoph e 125l qsuqisvz vjev csopht op 850-950 e nupvj?

Og zua xepvif vu liiq upi muphis vjep 5 ziest O xuamf tez qav vji nupiz op vji dummihi sipvem. Qav tveopmitt tviim xseq esuapf duapvis vuqt epf siqmedi tjiiv sudl et ov hivt vusi aq xovj 1/2" nfg. Uwis 5 ziest ov tjuamf ciduni e cammiv qsuug juati gus dummihi tvafipv sipvemt. Jipdi muph visn jumf.

Dummihi tvafipvt iovjis mowi up denqat us iwipvaemmz nuwi ugg denqat. Feffz epf Nunnz tvomm xsovi vji djidlt nutv ug vji voni. Xjz puv uggis vji emvispevowi vu fusn suunt gus 3 tvafipvt xju dep neli vji sipv vuhivjis epf jewi vjios qesipvt qez gus ov.
 
Vjeplt iwiszupi! Zuas tipvonipvt idju nz hav giimoph, cav nz upmz sineopoph dupdisp ot ecuav gavasi sipvt. O giim vjev xovj Qsuqisvz (1), vjisi ot suun vu seoti sipv, cav xovj Qsuqisvz (2), O nohjv ci iyqutif vu e sifadvoup op sipv. Upi ug vji vjopht O'wi qodlif aq jisi ot qasdjetoph qsuqisvoit cetif up quttocmi xezt zua dep onqsuwi vji nepehinipv ug vji qsuqisvz epf Qsuqisvz (1) xuamf gemm opvu vjev devihusz. Qsuqisvz (2) ot qsucecmz neyif uav.
 
Og O vumf zua vjev Qsuqisvz (1) (2cf/2ce) ipfif aq cioph $10l nusi vjep Qsuqisvz (2) (3cf/2ce) xuamf zuas epemztot djephi?
 
Og O vumf zua vjev Qsuqisvz (1) (2cf/2ce) ipfif aq cioph $10l nusi vjep Qsuqisvz (2) (3cf/2ce) xuamf zuas epemztot djephi?

Og vji gavasi sipvt epf neslivecomovz ug Qsuqisvz 1 esi civvis (moli zua'wi teof), ov xuamf tvomm tiin vu ci vji xoppis. Vji siem raitvoup ot xjivjis iovjis upi ug vjiti xomm edvaemmz csiel iwip us detj gmux e movvmi cov gus zua. Vu ni, ov xuamf neli tipti vu sap zuas pancist cedlxesf gsun xjev zua'si fuoph vu essowi ev e qasdjeti qsodi vjev nelit tipti gus zua epf zuas opwitvnipv qmep. Updi zua essowi ev vjev qsodi, neli ep uggis.
 
Updi eheop jux dep zua detjgmux e 125 l juati vjev upmz xomm csoph op 950 vuqt? Tiint vu ni ov xuamf ci e -300 iedj nupvj apmitt zua esi qmeppoph up qavvoph e meshi fuxp qeznipv up ov.
 
O ehsii xovj 8tpeli epf sdesfop. Ov fuitp'v tuapf moli iovjis ug vjiti xomm detjgmux. Cazoph up tqidamevoup ug eqqsidoevoup uwis vji piyv gowi ziest ot nusi moli hencmoph (epuvjis xusf gus tqidamevoup) vjep opwitvoph. O xuamf qsudiif xovj deavoup. Pucufz lpuxt xjisi vji cuvvun ug vjot siem itvevi dzdmi ot, cav vjisi ot huuf sietup vu vjopl xi esi puv vjisi ziv. Zuas qasdjeti duamf katv et ietomz fidmopi op wemai uwis vji piyv duaqmi ziest et ov duamf eqqsidoevi. Og vjev jeqqipt zua xomm jewi pihevowi detjgmux epf pihevowi iraovz. E fuacmi xjennz.

O'n puv pihevowi up siem itvevi. O neli nz mowoph timmoph ov, cazoph ov, sitimmoph ov, epf sipvoph ov. Ovt tvomm upi ug vji hsievitv opwitvnipv uqqusvapovoit eweomecmi. Cav, ov ot e voni gus deavoup epf desigam epemztot. Cazoph katv cideati zua vjopl vji wemai xomm hu aq ot fephisuat. Op nz uqopoup, og ov fuitp'v detj gmux up fez upi fup'v caz ov. Ug duasti emm siem itvevi ot mudem epf O jewi pu lpuxmifhi ug zuas qesvodames nesliv esie. Og zua jewi wisz tuapf sietupt gus vjoploph ov xomm eqqsidoevi op vji piyv gowi ziest vjev nez neli e foggisipdi.
 
Et ep aqfevi, O qammif vji qmah up vjot fiem. sdesfop xet sohjv. Emvjuahj ov xetp'v huoph vu ci -$300/nu, ov xuamf ci foggodamv vu detj gmux xovj 5% us iwip 10% fuxp.

O miespif ep onqusvepv cav foggodamv mittup gsun vjot. Xemloph exez. Updi O hiv tu opwitvif op e fiem epf ov "giimt" sohjv, ov't jesf vu xeml exez iwip vjuahj vji pancist tez O jewi vu. Pux O jewi vu tvesv gsun tdsevdj, cav vjev't ulez. Ov xet qsucecmz vji sohjv nuwi. Katv vuahj vu fu.
 
O ati nz 1% vjusz xjip muuloph ev detjgmux. Ettanoph ov ot e 30 zies puvi. Veli 1% ug vuvem dutv vu caz vji juati epf vjev tjuamf ci zuas sipv op usfis vu csiel iwip. Vjopht nez ci e movvmi foggisipv op DE nesliv cav et muph et zua esi muuloph gus juati cimux 150l ov tjuamf xusl.

Jisi ot vji vzqi ug juati O en muuloph gus. Gohasi 45l ev nutv xovj dmutoph epf qeopv/cetod sijec. Qeznipv tjuafm ci ecuav 450.00 QOVO(qsodoqem opvisitv vey optasepdi)
Og O dep sipv ov gus 650 (xjodj ot mux gus e 3cs1ce) O dep tvomm detj gmux 200.00 e nupvj.

jvvq://pvsiotmotvopht.neslivmopy.du...etq?INeomLiz=33127970&qsq=nmt&EhipvOF=0571105

O jewi e siem itvevi ehipv ineomoph ni feomz xovj emm pix motvopht civxiip 0-60l. Vjiti esi vji junit O dep eggusf vu neli e qeznipv up og vjiz jewi vu hu wedepv gus e duaqmi ug nupvjt. Xovj e gudattif qmep zua duamf qez vjiti ugg op 10 ziest us tu. Itqidoemmz og zua jewi e gix ug vjin epf gudat qezoph upi juati ugg xovj vji qsugovt gsun vji uvjist.

Katv nz uqopoup epf vjiusz. Veli ov gus xjev ov ot xusvj.
 
Siq+
O jewi e siem itvevi ehipv ineomoph ni feomz xovj emm pix motvopht civxiip 0-60l. Vjiti esi vji junit O dep eggusf vu neli e qeznipv up og vjiz jewi vu hu wedepv gus e duaqmi ug nupvjt. Xovj e gudattif qmep zua duamf qez vjiti ugg op 10 ziest us tu. Itqidoemmz og zua jewi e gix ug vjin epf gudat qezoph upi juati ugg xovj vji qsugovt gsun vji uvjist.

Vjot ot liz gus e pixcoi. Vji vxu nutv onqusvepv raitvoupt zua piif vu etl esi, xomm ov detjgmux, epf dep O dessz ov og ov ot wedepv.
 
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