I need help determining whether this is a good deal or not.
Price $52k, 30 year mortgage 20% down 5% interest + closing closts (how do I pre-calculate these?)
Estimating about $2k work for kitchen and bathroom
Estimating about $1k work for the rest of the house
Needs glass block windows in basement (how do I figure cost of these, was supposed to get an estimate on another rental house we own and the guy never sent it to us)
Taxes are about $200/month
I'm estimating to get between $900-$1100 rent, so want to estimate returns etc on the lower end at $950/month rent.
Figure about 3% on closing costs. Figure about $50/ mo for insurance. Your PITi would be about $473. Be careful on those estimates for repairs. Are they your estimate a or from a GC THEY SEEM LOW BIT I have not seen the property. Sorry, I do not know what a basement window would cost. But if your numbers are correct, your cash flow would be about $450/mo which is very attractive. How is the area? That's critical. If the area is a high crime area, it is not worth it as you will get a low quality tenant and have difficulty selling the property. Just my thoughts based on limited information.
The area is C property.
My estimates are based on the people that I have doing work for me. They give me good prices since they realize I will use them again and again.
I think the basement glass block windows are not standard size, so will probably need custom made.
I was thinking to estimate about $2k for the glass block windows, but not sure if that's high enough.
Oh and if we decided to do carpet, that would be about $2k as well.
Sounds good to me, put 12k to sleep for 3-500 a month forever? Good deal to you? Good and bad are relative terms.
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