Seeking advise on first investment property (Rental/Flip)
Hey guys! I am new to bigger pockets and would like to get some advise on my first potential investment property. The house is currently foreclosed and owned by the VA. Property is being sold "as-is" with the right to inspect. Seller will make no repairs and VA does not pay for or warrant title.
The house is in need of some repairs. I am looking to do most of the minor work myself (paint, flooring, etc). My goal is to live in the property for one year while I put in the sweat equity and outsource some of the work that I will not be able to manage. The house does have a pool that I would like to fill with dirt in order to eliminate the pool. Let me know if you have any better suggestions.
I am leaning towards a convention/hard money lender as the house will not pass inspection and will not be approved by FHA. The plan is to buy title insurance and have a title company do a title search to make sure there aren't any issues/liens on the title.
Please see below pictures and info on the house. I appreciate any advise as this will be my first purchase and I could use a lot of help. What do you guys think would be a good offer price to make this a good deal?
3/2 1,778 sqft. SFR Built in 1966
Asking Price: $105,000
ARV: $180,000 - $190,000
Comps in the area sold in the last 3 months between $185,000 - $194,000
Down Payment:$5,250 (5%)
Estimated repairs: $30,000?
Estimated rental income: $1250- $1350/ per month (based on rentals in the area and rentometer)
Estimated Monthly Cost: $480 (P&I), $84 PMI, $70 home insurance, $200 Taxes.
Repairs needed:
Roof will need to be replaced
Pool filled
Floors need to be refinished and will need new floors in some areas
Drywall damage in the walls in a few places
Lighting Fixtures
Interior Paint (whole house will need to be painted)
Bathrooms will need to be updated
Kitchen will need to be updated (cabinets can be refinished)
AC was replaced in 2013 Indoor/Outdoor
