I'm looking to acquire my first rental property. Did my research, the numbers look good, but just wanted to get the people's thoughts before I go through with the transaction.
Repairs: $40,000 (contractor estimated $35k then I added another $5k to be overly conservative)
Total Investment: $53,500
Monthly P & L:
Prop. Mgmt: $80
Deferred Maintenance: $50
Profit per month: $406.42
So tell me- deal or no deal?
Thanks for reading and responding.
Seems like you need $43k in cash for this deal? All cash?
all cash deal, and financing in place for the repairs
$4800 per year on $53k?
What is it worth after repairs?
@Mario T. ... looks good to me on the numbers side.
Couple thoughts, what kind of neighborhood, and any issues with crime there? Overall ages of houses there, are you getting basically a full rehab with this money? Roof, HVAC?
I'd be curious on the ARV on this ... but I'd be feeling good about it so long as the value is there and the market is good there for rent for a quality tenant after you put all this cash into this house. Make sure not to overdo the finishes ,,, it's still a $50k house.
@Nathan Brooks your comment is a sight for sore eyes
ARV is $70k
Almost a full rehab. Roof and HVAC needs work. Market is great for rent right now. Neighborhood crime is low. No serious crimes. Thanks for all the help
@Mario T. sounds good! Good luck!
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