Rookie crunching data for possible 1st buy
Hey all. My wife and I are considering making an offer on the following SFH:
3/1 with 1340sq.ft listed at $64,900. Built in 1954. Its an estate sale by the only child of the deceased homeowner. Vacant for over a year; on and off the market since June of 2013. Decent neighborhood. Lots of seniors, blue collar folks and some college kids.
$4500 in DIY renovations estimated: drywall repairs for small mold & water spots; painting interior; ripping up carpet & installing hardwood laminate; ripping up vinyl & installing tile; replacing oven/stove, refrigerator, & dishwasher. Can live with roof and HVAC but will probably need attention w/in 5yrs. We plan on living in it the first year and then renting it out.
20% down for 30yr fixed at 4.3%
Estimate $850/mo. in rent. Median rent in area estimated at $750/mo. Upper end is around $1000/mo.
Estimated cap rate: 7%
Estimated annual cash flow with 10% PM factored in: $3263
What do the BPers think? Thanks!