First rental Property
Hey all!! I have my eye on a 3/2 SF 1748 sqft. Details: home is completely gutted and will require $40-$50k in renovations. My target purchase price will be $20 to $25k. ARV will be around $90-100k based on most recent sold comps. I plan on holding the property permanently. The rental market is solid and I will be able to get between $1000- $1100 a month. Financing: 20% down on purchase price, 100% financing for rehab costs on a 12month interest only loan, will refinance after rehab is complete. I am not familiar with this type of loan so any insight will be helpful. Does this sound like a solid first property to the BP world? Thanks for any comments.