Is this a good deal? what would my ROI be?

Question

Hey im new to real estate investing. Looking at a foreclosure that has an asking price of 35k. It is 1350 sqft, 3 bed, 1.5 bath townhome that has $78 a month HOA fees. Looked at the property yesterday and mostly everything appeared to be good except the HVAC would not come on. Lights, appliances, and furnace all worked, good neutral paint, tile on first floor, carpet upstairs; couldn't test the plumbing since the water is turned off. Looked in attic and had adequate insulation and no signs of water damage or termites. Listing agent says the property was previously being rented out to a family of 5 for $700 a month. Looked at rent of neighboring townhomes and they all rent for around 600-700. Is this property a good investment even with the potential cost of a new HVAC? What would my ROI be?

Joel Owens · Answer

Doesn't say what area you are in.

If the area is decent 600 rent for 35k is pretty good.

Check for year built of the town home. Watch out for poly pipe or galvanized plumbing. An old cast iron sewer line can be bad as well.

Could have failures in the main going to the street. A cheap plumber usually charge a few hundred to scope the toilet and lines to street to check for problems.

Is this a good deal? what would my ROI be?

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