Inherited a house I want to rent out
This will be my first step into the investment realm. I have recently inherited an older home that I want to make some fixes to and rent out. There is no mortgage. The house is older and needs new roof, furnace, electrical, plumbing, flooring, windows and a basic landscape job. My problem is I don't know how to figure out what will be reasonable to invest in it to still make a profitable cash flow. In my area I can rent it for $600 to $700. I have capital to work with and don't need to get a loan to fix it. Any thoughts on this would really help.
Mary
Most Popular Reply
Find the nearest Real Estate Investors Association (REIA) and network to find out some reputable contractors who do rehabs for investors. Get 3 bids (you may want to start with one and get a list of work items, then get the other two to estimate the same work - don't share pricing!) and select the one with the best reputation with a reasonable price (not always the lowest).
Rather than spend your capital, consider to do a HELOC or cash-out refinance to fund your rehab and put any excess plus your own capital into additional properties if you want to do more of this.