Deal Analysis
Ok so we continue to look for a good deal. We have recently looked a property and the numbers seem to work but I can't say that it is a killer deal but a solid little house. This is a good area with 10/10 school system so that is definitely a plus but it is on a main road which is not my favorite kind of house to buy (although for rent sign will be seen by many everyday).
Here are the numbers
Purchase: 80K
Repairs: 5K (hvac, paint, fridge,stove) Roof is new
AVR: 95K to 100K
Taxes: $525 per year
Market Rent: $900 to $1000
Purchase: 15% down with
Closing Costs & Escrows: $5000
3BD - 1 1/2 Bath - 1 car garage
1100 square feet
Year: 1972
Exterior Shape: Average to Good
Interior Shape: Average/Cosmetic
The houses in the same area and style are selling for 90K to 120K so the resell value is there. It is a C+ house in a B/C area. The only reason it is not a B house is it is a 1972 house so it has fixtures and molding from the 70's but it is in good shape and the area is appreciating at about 3.4% per year.
We have looked at cheaper properties but just can't stomach the neighborhoods. Should we continue to look or does this seem like a solid first deal? The school systems are highly sought after in this houses location so that is a selling point.
Thoughts?