Greetings Fellow BPers,
Seeking some advise on my 1st buy-hold LL deal. I know of a deal whose numbers work out like so:
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(tool sourced: https://www.biggerpockets.com/buy-and-hold-calculator)
- 2 story home, with 50% equity potential (once the repairs complete).
- Tenants are paying on time for 1+yrs and each have renewed for 10+yrs each time.
- Needs 10-15k in repairs within the 1st 2years.
- Home is a SFH currently with two families (one upstairs and one down) using separate entrances and kitchenettes.
- Legacy agricultural district converted into rural homes, so their neighbors have pigs in their yard, goats, mobile homes, etc...
- Not entirely sure what the following means, but the seller states the following and wonder if this automatically means I will not be able to get financing from a bank:
- "This property will be quick claim deeded to buyer, buyer needs to be a cash buyer. It was a tax deed sale. Ideal owner would be buying to keep it as a rental after 4 years of ownership it automatically has clear title. If not, buyer would have to sue for quiet title in order to resell."
Unsure if the above is a good deal or not. Having trouble making up my mind on it. I haven't called a lender yet to see if it's even possible from that standpoint.
Couple of quick flags:
1. You mention it is a SFH but is built as a double. Check with the town to see if it is zoned for 2 family. Otherwise you may be forced to deconvert it in the future when they find out
2. Sounds rural, not sure about the area, but it might be a lot harder to rent than something in a suburban area if your tenants do move out. Also probably harder to sell when you want to get out as there won't be as many potential buyers
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