1st Deal Analysis
Hi all,
I'm looking at buying my first property. It's been on market for a few months with a listing price of $300,000. Fully utd comps look to be in the 320-340 range. I've walked the property and it could use some work. Disclosures were full of "owner doesn't know"'s so a good inspection is definitely important. It's officially a 4 bed 2 bath, but unofficially a 5 bed. It has an unfinished attic and basement as well. I was inspired by Real Estate Rookie ep. 35 to rent by the room to college students. This house is about a 10 minute walk, 2 minute drive from campus. Rooming on campus costs roughly 13k per year. Comp rent is tricky since it's typically whole house instead of room but I've found 1200/mo to be a solid estimate. I would live in the house to meet FHA requirements, with 5% down. I'm considering putting in an offer for $265k. With some immediate cosmetic work and a tree cut near the house, I estimate my all in costs at $25,090. Holding costs and maintenance savings would equal $2900. This seems like a solid deal if there's nothing wildly wrong. The goal is definitely cash flow over appreciation for this deal, but if I can slow BRRRR, all the better!
Is there anything I seem to have missed? I think I'm ready to move into offer and inspection phase but I want to be sure.