Updated over 2 years ago on . Most recent reply
Thoughts on possible first deal?
I am looking at getting my first deal and have come across something that might work, but I am looking for thoughts and advice.
The property is a 2Bd 1 Bth, close to the town center. House is listed at $69,900. It will need repairs, but a conservative ARV is around $120K. I am considering it a rental that can rent for $1000 a month. After expenses, it would have a monthly cash flow of around $215-230. The down payment would be between $14,000 and $17,000, depending on whether I go conventional or DSCR. Repairs I am estimating to be in the $ 10-20K area, so the total cash needed would be $24,000 to $35,000. The ROI after a year would be around 7.25%, using extreme numbers.
My exit strategies consist of keeping it a rental, flipping, or refinancing the property.
The property has been sitting for 90 days, so I would try to negotiate the price. However, I would also have to figure out why it has been sitting for almost three months. The price has already been cut down twice from $79,000 to $74,000 to its current price.
I will also need to look for partners for the cash required, but I wanted to get some feedback before going any further.
Thank you.