I recently started working with my brother, he has majority of the cash but works as a contractor leaving me to do the leg work. I have the opportunity to close on a deal next week I have a gut feeling that it's a good deal.
2 houses in two (not so great areas in town)
House #1 (3 bedroom 1 bath)
Asking Price $34K
Current tenants that are good screened and pay $700/month
This house is an older home may need repairs but none immediately.
House #2 (2 bedroom 1 bath) on a large lot
Asking Price $37
Older home as well it's a smaller 2 bedroom that may need about 1K to finish and make really nice, rehab is about 80%
I think this can rent for $550-$650 / month
I can have both houses for $65K
Because they are older homes it will be hard to finance them or sell them. Rental income is great but would be loosing the cold hard cash... I have 83K available to invest and was thinking of going to the court house to purchase a foreclosure home rehab and flip. I know it's not that easy as you see on TLC but that was that was the plan until this deal came around.
first welcome to BP, do you have construction rehab experience? if so do the flip, you say not great areas of town, most investors start in these areas and regret it and then move up into better areas. Take the payday of a flip and invest in nicer areas. (less headaches usually)
Jeremy thanks for your reply. I'm familiar on a high level. In college I studied Construction Management. I did not follow that career path though instead moved to IT.
Thanks for your reply
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