Please help me figure out if this deal is worth moving forward on
I'm trying to BRRR. This is my first time investing in real estate which is not my own home. We have two days to purchase a contract from the wholesaler so I have to make a decision.
The deal:
- The negotiated price: S67.5k
- Rehab: ~11000
- ARV: S110K
- Rent: conservatively speaking: $850
The complication:
- I don’t have page 1 of the 15 page lease. I’ve been told it’s irretrievable.
- The owner is living in the garage with his girlfriend. I don’t see anything mentioned about this being okay in the lease. This house isn't zoned for multi-family.
- The tenants I was told is being difficult in this transition period. She has two small kids.
- I was told she’s not paying rent. I have not seen a paper trail to prove this so I’ll likely have to start one when we take the property over.
Questions:
- Does this deal seem too complicated for the numbers to be worth it?
- I’m doing this remotely and trying to be hands off. I’m thinking to hire a lawyer to handle the eviction.
- Can I do a rehab when someone is still living in the home? I was thinking to come in, let them know I’ll be reducing the rent for one month to compensate them for the headache of rehab. If so does this need to be written into the contract?