Need some thoughts from you guys.
I'm buying a piece of property in NC with about 2 acres for 166800. It has 2 houses the first is fairly updated with a new roof, new windows, updated plumbing and electrical all of the structural and important stuff is updated. The other house on this property needs about 20000 dollars worth of work. Once updates are complete on this house I would probably receive somewhere between 500 and 700 dollars in rent. Any recommendations or thoughts are highly appreciated.
Not enough information is given to provide good feedback
Hello Joshua seems like there is some information that's being left out. I guess in order to give you any advice I have some questions for you. First off what kind of neighborhood is it? A-B-C ETC. What's your budget looking like after closing? will you have enough for repairs? What are the comparable properties going for in that area? Are you handy and doing the repairs yourself or hiring out? there's a lot more information that goes into play when your asking if a deal is good or not. I am from Philadelphia PA and I can tell you this for this area that would be one heck of a great deal! hope this helps
You're only going to receive $500 in rent for a home you're about spend almost $190k for? That's a terrible deal based on those numbers alone. Maybe with more information it could get to sounding better.
There are 2 houses. One I will live in. The house I will live in would receive about 900 a month if I moved out. I am also putting 0 down. It is a VA loan at 4.5 percent. Monthly mortgage is about 1050.
Let’s say you would be able to get 600 and 900 for them both. That’s 1500/ month. Your PI is $1050 property tax and insurance probably another 150-200/month, so that brings you to $1250, Property Management another $150, now we are at $1400. Then you need to account for CAPEX, maintenance and vacancy. That will definitely take you into a negative cash flow. At that price this is not a good deal. A bad deal at 0% down is still a bad deal.
The 1050 included property tax and insurance.