I have a family member trying to purchase a home for $276,000.
They want to put $100,000 for the down payment and the estimated rehab is around $50,000 (husband is a contractor, he can do all the work). They will also be doing an FHA Loan ($9660) and FHA 203K for this home.
They were told the mortgage would be around $2500/month and rent each unit around $1300/month (2 big units can be rented out for this price). Taxes are around 9-10k/year.
I crunched the numbers and figured out that the ROI is well below what a typical investor might consider profitable.
I'm I right on this one?
Here is the listing, below.