Smart Move?
I purchased a 3BR 1.5Bath fixer upper in a nice neighborhood and moved in May 2014. I purchased it w a 203k FHA Loan. Purchase price was 135000 and the property appraised for 155000. I borrowed an extra 9000 w the 203K for a new furnace and I needed kitchen appliances. So total mortgage was for 144000 and I put 3.5% down. A realtor told me if rehabed it would be worth at least 180,000 but probably more. Said to count on 180,000 to be safe. Total rehab to make it worth that, would be around $30,000. So if did that I would have 179000 into the property w closing costs. I would plan to rent the property then. But after doing that, with what I could rent for I'd basically be breaking even in worst case scenario. Best Case Scenario I'd be making 5%-6% (which is probably a bad return for most of you). What is killing my Return is my PMI. Without PMI it'd be 5%-6% worst Case and 8%-9% best case. First, is this worth all the work and money to make the property worth $1000 more than what I'd have into it and then maybe just break even on renting it? I'm just getting started in the last couple years, so I'm always looking for any guidance I can get! I think I just need to make sure I find better deals in the future!