I am trying to decide which property to invest in. All inputs are welcome. Both are at the same price
Property A: Lot is 7,000 sq ft and the house is 2,700 sq ft. 4 bedrooms with an extra room that can be converted to another room and 3 bathrooms. It needs work on restructuring 1/4 of the backyard and some cosmetic work inside the property. 3 car garages.
Property B: Lot is 6,600 sq ft and the house is 2,500 sq ft. 4 bedrooms only with 3 bathrooms. Everything is well kept and is in really good condition (Like a model home). This has a 3 car "tandem" garage.
I want this to be a buy and hold property (at least for now). Which one do you think will be a better investment (cash flow wise and value wise)? Thank you
Not really enough info to evaluate.
Depends on market value of both properties - are they listed at fair market values?
If the two properties are located in close proximity of one another, then I would look at the price per/sf to determine whether property A's extra 200 sf and additional "bedroom" is worth its current listing price since the real value is after repairs. If not, there's a point of negotiation to bring down purchase price.
I think it depends on what you can get for rent on each house.
We would all need more data to help you. Here are the things to consider:
After Repair Value of the home
Renovations required (cost)
Fair Market Rents
Costs of the homes so you can calculate cash flow
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