What do I need to look for in this deal?
I am new to REI and to the BP community. I have been looking for my 1st deal and I have an opportunity that I would like some advice on.
I found a townhouse in the town my son is going to college in. This is a 3/2 in a great part of town and very close to the university. Here is the deal.......
The townhouse had the pipes burst during the last cold spell here in Nashville. The pipes are repaired but the drywall and flooring still needs to be replace in the bottom floor. The owner has an estimate of $6300 for the repairs. The owner wants to deed the property to me for $10,000 plus the cost of the repairs. There are 2 mortgages on the property. The 1st for $110K and a 2nd for $19K. The current payment id $971 a month.
My son and 2 of his friends would be able to live in the house and we could get $600 a month from the roommates for a positive cash flow of $229......during the school year which would leave 3 months with no payments.
My question is what should I be looking at in this deal? Any advice will be much appreciated.
Blessings