1st Investment Property. Corpus Christi, TX

[Thomas B.]

I just closed on my 1st investment property! It was listed as a 3/1 foreclosure; however when I walked the property with my agent it looks like a 2/1 with a single car garage attached by a breezeway that had previously been converted to a 1/1. in the back of the property there is a huge 2 car garage that also has a 1/1 apartment in the back of it. Three units for the price of one! 

I paid $99.9K cash (using a HELOC from my primary home) and plan to finance the renovation with a TSP (401K) Loan. It is very close to public transit and local schools and shopping but a lower income blue collar neighborhood. Plan to rent through Section 8. According to the SAFMR for the zip code, I should bring in $2840 in rent between all 3 units and $575 net after all expenses paid.

I have budgeted $50K for renovations but since this is my 1st time, I am not sure how realistic this is. I know it needs considerable foundation repair, it has wooden double hung windows with several broken panes and badly peeled paint on the trim. The exterior has a stone/ brick veneer that is in decent shape, other than the numerous cracks from the foundation sinking. The roof is in unknown condition. It is very low pitched, so it shouldn't be too expensive to replace with TPO or Spray Foam Roofing, like the commercial buildings. 

We'll know more after the Home Inspection on the 27th.