Property costs 9,900
I am able to pay 6,000 = 500 a month or 250 a check (bi-monthly) in one year
2 bedroom 1 bath
20 months or 1 yr, 8 months to pay off
8,100 in repairs.
18,000 loan 5% is 900 10% 1800
Property sold as is.
Also what would be the best way about acquiring the extra funds to finance everything?
Where are you getting that repair estimate from? Seems REALLY low for a house that needs a complete cosmetic makeover plus unknown other issues. Given the state of the kitchen and bathroom, not to mention the holes in the walls, I'm guessing it goes beyond cosmetic.
Any time I can buy a house with a credit card I get a little concerned personally. You could almost make more money gutting the house and selling the piece parts for profit.
Without knowing whether you plan to hold it as a rental or plan to tear it down and build a bowling alley, we can't even begin to tell you if it's a good. Then, once you tell us what you plan to do with it, you'll have to tell us a whole bunch of other information regarding how much income the property will produce and how much it will cost in expenses each year.
Once we have all that information, we can start to analyze the deal...
I think I have my answer lol thanks fellas.
I live in Seattle area. I bought 4 of those in Memphis due to the low price. Seemed like a good idea at the time. Had local co. do the rehabs. Ended up with about $27K per property avg. including purchase and rehab. Would have done better to go for pricier rentals that didn't need as much rehab. That would have put us in better neighborhoods that would allow for stronger rents and more stable tenants. It would also have put us in neighborhoods with stronger appreciation. I had to rehab again and again when tenants moved or were evicted by the property management company I had hired. Was fortunate to sell them as a package at a $45,000 loss. After that experience, decided to buy local and went for small apartment building. Best thing I ever did. Financial peace. Good luck, my good friend. My only regret is that I didn't take the steps you are taking 40 years ago. The time goes by incredibly fast. We could have kept and paid off every home we ever owned that would be paying us now.
Assuming you plan to keep it as a rental, a property worth 18k is almost never a good idea. The numbers seem good, but the associated costs of renting such a house are almost always so high that they result in loss of return, not to mention the humongous headache.
You will likely have sky high vacancy, repairs, evictions/legal fees, etc. Plus, this makes for an exceeding unpleasant investment experience.
So, if it's a rental, I definitely would not do it.
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