I want to make an offer...

3 Replies

Offer 155k
Worth about 180
20% down
4% interest
30 years
Tax 3k
Insurance 3k
Rental 1700
Single Family Home is vacant
About 6k in repairs
What's the best way to determine if the numbers make sense?
I know that's a vague question, but please responds as if you were making a decision 🤓

This post has been removed.

Hold on to it for a while and rent it out...

well, based on the numbers you provided, you are buying at 90 % of market value after you make repairs. This just really depends on your criteria as an investor. I strongly advise you to check the mechanicals of the property. HVAC, plumbing, electrical and roof are some of the most expensive repairs to make on a property. If any of these items break down soon, you will be cash flowing negatively for at least a year. 

I personally wouldn't take this deal because there's just not enough equity in it. I would aim to buy at 75 %-80% of market value. Keep in mind, you most likely have to find a distressed property in order to buy at a deep discount.

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