Updated over 4 years ago on . Most recent reply
Would you do this deal?
Looking at this property for a long term rental, possibly a BRRRR if I could refinance out after repairs
Asking price: $85k
Rehab needed: $25k
ARV: $130k
Single family bungalow home in a c+ neighborhood (good schools, low crime)
Cash flow with using a 20yr commercial loan like I want (20% down, low closing costs) would be around $150-250/month after repairs and capex. Or, I could start with that, do the repairs and refinance into a 30 year loan, pull out most of my cash invested (hopefully) and cashflow $300-400/month
The only unknown for repairs is the basement appears to have mold on all the walls. Upon inspection of the outside of the house, the yard seems to be sloping toward the house pretty much all around, which I believe is causing the mold.
What do you think?
Seems like a good deal to me, but it would eat up all my reserves along with a portion of HELOC to pay for construction costs