First Foreclosure Deal w/ Reno assistance

[Justin R.]

Hey guys, long time reader but first time poster.

I recently came across a foreclosure in a college neighborhood I am familiar with, that has a great rental market, especially since this house is in a great area of the town.

The house was originally listed as a foreclosure at $69,900, and was recently bumped up after 3 days online to $89,900.

The tax assessment is over $200k, but neighborhood comps range from 150-220k.

Home is 7 bedroom, 1 4 BR and 1 3BR

I figured I could rent the 4BR for 1200-1400 and 3 BR for 1000-1200 based on my research, however I plan to live in 3BR and rent out 4BR for at least a short period of time.

If I end up having to go at full asking price of $89k, a 50K renovation budget would bring total cost to 140k, which I think is the max I'd be willing to go.

Just wanted to get further opinions to see if my numbers make sense, if 50k is a "healthy" budget for a basic college reno, or not. My numbers show that at 140k and only one half rented I'm at a small loss, but I'm also living in half. I figure after the 50k renovation is paid off and I rent out both units I'll have increased equity and a nice cash flowing property.

Any thoughts on what 50k reno is enough leeway or anything else I should consider? This is my first investment property after months of research and searching. On MLS the property is listed as in "good" condition, so I'm sure it needs at least some repairs. I haven't seen the inside yet, but am working with my realtor to setup appt for Saturday.

Thank you.