Potential property in Muncie, IN
Hello all,
I am in the market to look for a Rental in the INDY area, My price point of a property is 30-60K however, i came across a whole-seller on craigslist thats selling a property for 10K with "minor" things that need to be fixed before it becomes rental ready. I was skeptical on what needed to be done, so I have found a contractor to give me an estimate of what needs to be done. The contractor comes back and give me an estimate of 6-8k and he laid out all the problematic things that hes came across but states that the home is in a good area. I google the address and "walk" around the neighborhood and I do not see anything to alarming except the fact there are some boarded up homes. (google maps pictures are about 3-4 years old). I then forwarded the estimate to the wholesaler and he says that the contractor is marking up his services by a lot and the wholesaler can fix those problems for 1600.00 and that it will take him a couple days to work on the property.
My question to him was why don't you keep the property as a rental instead of flipping this home? His reasoning was that he has 12 other properties and he doesn't have the time.
from what I gathered, this home would rent for 475-550 in the area. I would be getting about 27% ROI which is a fantastic deal but something seems a little off to me.
Any suggestions??