BiggerPockets

Currently there is a house across the street from me that was a foreclosure that is for sale for $10,000 it is an older 3 bedroom home that two years ago would have probably sold for $50,000 the area I am in has one duplex and two single family homes that are rented all most constantly. Plus my one bedroom apartment above my garage that my current tenant has been there for 3 years. I could easily get the money for this home by refinancing the mortgage on my house which would save me a point or two in interest and may not raise my payment more than $20. My preliminary numbers on the house are $1400 year taxes and $500 insurance, should rent pretty quickly in the range of $500 What are reasonable numbers to figure for repairs, and what am I missing?

Jim is right, this is an excellent deal provided it doesn't require a big rehab.

Mike

I have $2000 dollars easy maybe $3000 available to get this started. Ant ideas on quick money to complete? At least until the refi is done? I have an appointment to get in the house tomorrow, here is what I already know. I have lived across from this house for 14 yrs and the same owner had been their the whole time. He worked on the house a lot and did many major repairs including putting a new front porch on the house. This house will need very little to get it rented, appliances and new furnace is about it. Known problem, the storm sewer tile is broke in the alley beside the house, when it rains hard the broken tile goes into the basement. He has tried to get the city to acknowledge and fix the issue with no luck. My fear is sitting this summer with no electricity that the basement will be full of water!

Very good points. I just wsh I knew how much he tried to get the city to fix their problem.

Scott. I would add to the list a foundation water treatment and a sum pump. It should prevent flooding if done by a reputable company (Dwyer is one of them). If it doesn't require any digging outside the property, you are looking at about five grands. I had it done in one of my properties and so far so good. Also, some of those companies offer financing through Wells Fargo Home Projects with no finance charge for one year. If you play it right, the rent should be able to cover that in one year.
It seems like an excellent deal, so go ahead and grab it. Just remember one more thing, if you buy dirt cheap cash, even if you have to invest in repairs, you will recoup the money rather quickly.

Good luck

I now know why he walked!
To put it simple NFF It does not have a "furnace" it has a boiler. I saw two broken hot water lines to the upstairs registers, and have no idea the condition on the boiler. The upstairs bedroom has a pole holding the ceiling up and you can see a big dip in that area from the attick. Plus there is plaster falling out all over the house.
The house does have a nice kitchen and some beautiful wood work. However I would not mind a week or two's worth of work but this will need months or BIG $ to get it rented.

Off to find my next possible victory!

May not be the right place to ask this, but here it is. I found another little house in Wabash, I have been in it before as some of our friends were buying it, up until the divorce. It is a foreclosure listed with a local realty. The listing states that in order to make an offer you have to have proof of funds, or letter from financing institution guaranteeing funds plus earnest cash. Is this normal?