My First Deal.. HELP!!
Hi all, I'm new to real estate investing, but I'm not getting cold feet about buying a property. I think I've found a deal that will work for my scenario (house-hacking until I graduate college) but I would really like to get some input on my numbers, and I've got a few other questions about repairs and the ARV. So, I'm thinking that I can get this property for 57K to 60K and fit 4 people including myself in there. I know I can get 3 people @ 300-350 a month not including electric (I've already inquired a few good friends of mine and they've all agreed to move off campus to save some money) With that being said, I'm thinking this will cashflow about $180 per month, which sounds great to me. My worries lie here; as you can see the property is out dated and ugly on the inside. I really need help here; I would like to paint everything, replace most of flooring (not the hardwood upstairs) to fake wood, and tidy up some of the ugly light fittings/fans. I'm thinking all of that would cost me around 6K-6.5K.... Am I low??? Next thing, I'm scared about the garage... I don't know what to do with it and/or how much it would cost to rehab. I'm thinking slap some matching siding on it, new door, new side door ---> 3k? See link below.
30 year mortgage with 20% down. I have 750+ credit and zero other payments. My dad would finance all of the repairs. He believes in me and is a fantastic father, and would only ask for his money back within the next 10 years, but if it is profitable ill give him 5-8%.
Then after this is all said and done, I'm sunk in almost 70K and not sure if I'll be able to turn a profit.
My two exit strategies are as follows:
Keep it and continue to rent to friends of mine (college students) for a few years, then sell it.
Just sell it when I graduate (May 2018).
Thanks to all, I really appreciate it. I'm very excited to close my first deal, but I won't do it if the numbers don't work.
http://www.zillow.com/savedhomes/for_sale/35467529_zpid/1_pnd/41.186405,-81.288186,40.927002,-81.796303_rect/10_zm/1_rs/1_fr/?3col=true
Thanks,
Kyle,