Buenos Aires 2-bed townhouse at ARS 945.7m: does 8.2% gross leave enough margin?

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The agent’s case is that the figures produce about 8.2% gross. I am not yet convinced that the rent and purchase price can be compared so neatly.

The Buenos Aires townhouse is a 2-bed priced at ARS 945,700,000, with expected rent of ARS 6,453,000 per month. Before deciding whether the margin is adequate, I need to verify whether that rent is currently being achieved, how it is expected to change during the lease and which property charges fall to the owner. Purchase costs, insurance, management, property tax, shared expenses and tenant turnover could leave a very different net cash flow.

Which document or record would you check first to establish the real rent and recurring owner costs? Rental regulation may also affect the result, but I would rather verify the underlying assumptions before choosing a target return.
 
The gross calculation works, but I would not choose a target net yield until every figure is expressed on the same timing and currency basis. Clarify who pays property-related charges, insurance and any shared building expenses. Also model tenant turnover as more than lost rent: cleaning, repairs, marketing and management can arrive together.
 
Is ARS 6,453,000 the rent currently achieved by this property, or an agent’s expectation? I’d also want to know the assumed lease-adjustment pattern and whether your purchase costs sit inside or outside the ARS 945,700,000. Those details could matter more than refining the routine maintenance percentage.
 
I partly disagree that a single net-yield threshold will answer this. An 8.2% nominal gross yield may look adequate while still being fragile if rent, expenses and the property value move differently over time. Run separate cases for a longer vacancy, a large repair during vacancy, higher management costs and slower rent adjustments. If financing is involved, repeat them with a higher borrowing cost rather than relying on today’s payment.
 
I’d request an itemised history of property tax, insurance, shared charges if any, and major repairs, then compare it with the seller’s rent evidence. Build a 12-month cash-flow table showing exactly when each cost lands. The deal should still be acceptable under the stressed case, not merely average back to 8.2% over a year.
 
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