Good Deal?
Hi Everyone, I have been flipping properties but wanted to start investing long term, but do not have too much experience in analyzing income properties.
I just beat out multiple bids on a property, but am kind of nervous. I have 5 days for a home inspection period to check it all out. It is 2 bedrooms 1 bathroom with central heat. When its renovated I should be able to get $1400/month.
The price I got it for was $125,525. Down payment is 25% down( $31,381.25)
Closing costs will be around $7000.
That is $38,381 out of pocket to purchase. I plan to add central air/new heater, renovate the kitchen and bathroom, paint, and refinish the floors. Hope to spend $20k to bring it up to speed.
Total cash into it is $58,381.
The total mortgage payment would be $677/month.(PITI)
Rent $1400-$677/month= $723/month cash flow.
Do you see this as a good deal?
I know I should budget for future repairs.
Thanks for your time