Updated over 9 years ago on . Most recent reply
Phoenix Townhome worth buying?
Hello BP colleagues and Happy New Year!
Would like your advice on the following: Someone close to me would like me to take over her townhome in the 85022 zip code. Unfortunately, she lost her job. She owes under $99,000 and would like me to either take over her payments OR buy it off her at what she owes.
It's a 2 bedroom and 3 bathroom town home.
HOA has not been paid in years. Under $9000 is owes. ($160 HOA a month).
Repairs needed- cleaning, new paint, carpet and second floor (one room) floor squeaks. I am guessing that I will spend between $5000 to $7500 in repairs and cleaning.
She owes 3 months on mortgage.
I know I would have to pay Property taxes (assuming $850 a year) and insurance (assuming $700 a year).
No liens- YET.
I think the ARV would be $130,000 - $135,000.
If i were to buy it, i would like to rent it between $1000-$1100.
Still thinking if a PM is needed. Still not sure.
So, would this be a good investment/risk?
Appreciate your input.
Most Popular Reply
@Juan Lozano - Birdseye view of this doesn't look good. Your acquisition is at least $120k, depending on closing costs, and your ARV is only $130k. Add your holding costs and selling costs, and there's nothing left or a loss for a flip. Depending on taxes, you're probably not making any money renting it out at $1000, either. Time to look for something else!