so I have still been looking for my first real estate rental here are the numbers:
(asking) price 69000, im using conventional loan with 15% down. The home needs about 4k-6k for repairs. The arv is 85-90k for similar homes. So im putting 10,350 down with $100 closing and seller will pay remaining closing and fees. My rate would be $58650 at 5.25% is this good? my credit scores are 717, 704, and 743. Looking at the deal i can rent for about $1000 per month due to it being a 3/2 in a decent area. What do you think? I am planning on going to view this weekend.
@Rashad Colton Numbers seem decent. $324 per month mortgage on a 30 year mortgage, and $1000 rent. Even with the 50% rule you'd be cashflowing a bit. Nice that the seller is picking up most closing costs. Interest rate is slightly high but not terrible.
Only concerns I see: will the conventional lender approve it with the repairs that are needed? Are they simple like paint, or more like broken windows or missing sink? If the latter the bank might not approve it. Also if simple repairs like paint, the value of the house will stay around the $69k that you paid for it, at least for a bit. Don't expect it to instantly appraise for $90k.
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