Should I buy it or not

[William Hyman]

I’m looking to buy my first rental property. The man Inherited the house. He’s asking $25,000 for the house. The tax value on the house last year was $37,000. this year it’s down to $24,000. he went in and did some repair work. it’s what you call putting make up on a pig. The house is a 2 bedroom 1 bath. The rent would be around $400 or $450 a month. I know I would have to do a little work on the house, but my intentions is to buy and hold. With the BRRRR effect. What would be a good offer on the house? I was thinking around 15000 to 18000? Also even at 25000 it still fit the 1% calculations.

[Thomas S.]

There is very little money to be made on a $450 rent income. Repairs will be the same as any comparable property renting for 1K. I do not believe cash of 18K is well invested in this situation. You would be better off finding a more valuable property that the 18K could be used as a minimum DP on.