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unsure which house to choose for my first deal, and what about MTR near a hospital

Posted Jan 27 2023, 11:53

two deals to see which one to go: all will be 30% down, 6.25% interest, but two different areas in the same city.
1. 1957 SFH 3b1.5bath in a B neighborhood, 330k purchase price, renovation budget 30k (floor, paint, AC, kitchen cabinet paint), target tenant is a working-class family with kids (right next to an elementary and middle school), rent about 2200-2300.

2. 1940 SFH 3b2bath with good bone, 480k asking price, on the market for 90 days already, the targeted purchase price 440K, renovation budget 50k. The location is right next to a teaching hospital, basically on the campus of that hospital, can also build 1 or 2 ADU. SFH in this area usually sell for 600K+, but there is another one listed at 525k nearby with older interior. It will work out if I can rent the house furnished to travel nurses or medical residents (for example, 1000-1200 a room). Neighbor house Zillow estimate 1.1 million. I don't think it's a neighborhood for family since no school nearby. It's more of an old established neighborhood. I am confident to do a flip in the current market. Maybe I can, but I have to prepare to hold this house.

I think potentially house 2 will have a bigger profit in 5-10 years. Question is how I can find ways to advertise the house to hospital travel nurses or residents? Do they like to live so close to the hospital? Or they would drive a little to get an apartment?

another question how hard can we bargain for flix uppers that's on the market for a while? I was following a house listed at 399k and found it was sold at 320k then flipped now listed at 495k. Is that normal to just go 20% off low ball for a fix upper?

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