Sanity check / help me check my numbers
There is a foreclosure for sale next to the families house. It would give us better access to the 2 acres we have and based on my numbers be a good investment on it's owe.
Here are the details :
$95,000 offer that we worked down from $109,000 the bank wanted
$1500 in closing costs - (cash deal to refi after)
$51,000 in repair cost
$2100 in taxes per year
Will rent for $1250 a month
Tenant will pay all except garbage and $50 a month.
ARV:
$185,000 quick sale
$195,000 top value.
Our two concerns, one, the repairs are extensive the wiring and plumbing were completely stripped. If the repairs get too high over budget etc, it will become less profitable.
Two we have not worked with these contractors before, though they come very highly recommended and other bids were similar.
What am I not considering that I should be ? Thanks in advance.