Updated over 6 years ago on . Most recent reply
Reviewing a deal in a bad location
So I have located a 1/1 600 sq.ft (12 wide by 50 long) C class home is a C and maybe D class area, that I think I can purchase for all cash at $25K. I would like to put in another $15K – $25K in closing cost and repairs to get it rent ready. I believe I can get the value of the location up to $65K so I can perform a cash-on-cash refinance at 70% to get all my money out. I plan to rent the place out for $750 monthly with $441.67 monthly cash flow and 8.15 Pro Forma Cap.
The real question I have is the location. It is a bad location and I mean BAD. But this deal could be AMAZING if the numbers are right. I just think the location is going to be the real obstacle to get this to work. What would you do with this information?