they sell for 120k, rent for about 1200-1300, taxes are 100, hoa is 220. you should be able to yield bout 900 mo per unit, or 1800 for 240k. since you are not local, take off another 100 mo per unit for a management co., so you’d get a flow of 1600 for your 240k, about 8% return after expenses and their bubble price is double what you’d pay now and they are rising at about 10% a year, so it may end up being a 18% yield (this rise in price is during a great recession, a classic overshoot). Since they are the cheapest in the zip code and one of the few rentals near the largest casino in the state with thousands of rental demographic employees and only a few hundred rentals close enough to not require a freeway commute to get home for those employees, I see them in a perfect position to be solid rentals for years to come. The only problem is, investors have bought almost all of them, but there are still some, yet ignore those that are asking for 140+, those are kinda for the out of town suckers, which they do find.
There are two complexes, with stores and shops in between, 1/2 is owned individually and the other half is an apartment complex which chose to not sell once the market crashed but was supposed to be sold when it was being built and may end up selling at some point. he first complex sold between 250k and 300k, when the prices dropped to less than half that but rents stayed the same, they pulled them and made them apartments, it made more sense. At some point I see them selling them at a certain price threshold, as an individual investor, doing the same is probably a good strategy. The only problem is there are 3 current actives that aren’t shorts or pending, and over 100 have sold in the last 24 months in a complex of 220. All 3 of those for sale are overpriced by 20-25k, so this was good advice last year and the year before when I gave it, right now it might just be waving from the docks at a sailed ship. Then again, the numbers still beat almost anything in SD.
