First Investment Property
This is my first post. I'm trying to give background info here, sorry if I give you TMI!
We're 30 and we want to own rental property. My wife grew up in a family of property managers. Her dad bought nasty property, fixed it up, and sold it if it appreciated enough. He benefited from free labor for four kids. He owns 10-12 rentals at a time, and has owned close to 60 properties since the mid 80's. Hehas made a good "supplemental" income from this. My wife has leasing and eviction experience from working at apartments. I have minimal experience making some repairs myself and then managing others to make repairs; our current house had the potential to be a debacle but we did well, buying low, repairing efficiently, and now enjoying.
I'm looking at a property now in a Memphis suburb that is in an area full of new neighborhoods. It has a small house on it. I can pick the house and land up for $30K, remodel for $20K, and rent it for $800 a month. Insurance would run $600 a year, taxes $1200.
This is in a safe neighborhood - new subdivisions off the main road, and the main road this is on has a combination of new, large, nice housing and old country houses such as this.
My uncle is a successful real estate agent in a close by market (close by - not this market, which is why I'm not taking what he says as gospel) I could currently split the lot and sell the second lot (which would be more than an acre) for approximately what I'd pay for the entire property. I'm skeptical of this, yet within the past five years lots have sold that are slightly smaller, on this street, for approximately what I'm paying for the entire thing.
If a deal seems to good to be true, it normally is, yet I'm now in a house that was "too good to be true."
Thoughts/guidance? What additional info do you need?
What area of Memphis is this property located in, be a little more specific?
Not too many people are buying vacant lots so you might just end up with a lot of land for the one house.
" Safe " is a relative word if your buying it for $30k.
I flipped a house years ago and was able to split the lot in two. I sold the new lot before flipping the house. It worked out great. But I did not buy where that was crucial to making a satisfactory profit. I didn't know if the town would allow it until after I bought it.
I also have rental property and I don't really care to have big empty lot space just more for someone to take care of and it might lower your taxes a little to sell it off. If I could sell it I would.
Good luck with the whole deal.
Hi, the property is in northern Bartlett. It isn't listed.
Maybe @Curt Davis will come back and give you an opinion, concerning Northern Bartlett.
Raymond
Sounds good to me. What would the after repair value be? Great schools ratings?
If the home was listed it would have surely went for a higher price then $30k. Without knowing the address of the home its hard to say what school zone it is located in. I dont know too many homes in true Bartlett you can pick up for $30k, homes are usually nicer with higher rents. Either way, the numbers seem to be good.