Good Deal/Not so good deal?

[Rachel K Reiman]

I have what I think is a great opportunity in a fantastic established neighborhood to purchase a home and I already have three people who would move in as soon as I say it's ready to rent it for about 2100-2200. Listed for 250K, but needs about 40K worth of work, maybe less to start with and could Reno the rest later if my exit strategy was to sell. ARV about 340K. I want to be a cash offer of 235-240K as I think it'll go super fast. Would need some private or hard money until I pulled equity out of two other paid off rental properties. I am not sure I did the calculator correctly and pre-refinance cash on cash is about 5-6%. I cannot decide to pull the rip cord??????? 13572 Walnut Street, Omaha, NE

[Ryan Muska]

Wow that home has great bones. Lots of potential for cosmetics there. 

Is it electric heat? Are you accounting for capital expenditures? Is it in tornado alley (insurance may skyrocket)?  What insurance premium are you accounting for? Are you having a Property Manager? Have you rented a property out before? Are you planning on making tenant pay utilities? What would you reno if you were to do the reno immediately?

I think it looks pretty good. But I'd like to see your answer to these questions.