Just toured a place yesterday that has potential to be a good investment for my first rental property:
$119,900 list price
Would rent for $1400
Cash flow $450
CoC Return: 14.5%
Its all been updated, looks pretty modern, would be ready to rent with little work. My only concern is the foundation. The basement looks fine, its tiny and theres only a furnace down there. The ceiling of the kitchen though appears to be sloping down. There are no cracks and the ceiling is in otherwise great condition, but you can see its un-level compared to the cupboards. From the outside, some of the visible concrete foundation looks to be chipping away.
What would you guys do in this situation? It'd certainly be profitable short term but how can I possibly know if this thing is going to sink into the ground in the next 20 years or something?
Get an inspector out there and have it checked out thoroughly. Foundation and roof/trusses...