Need help with a possible buy and hold house

5 Replies

This is a 3/2 in Titusville, Florida. It is actually my childhood home, though I am trying to not let that make me do something stupid. I still want the numbers to work.

Asking price: $72,900

I comp it at $50-55k (though just a quick comp, still new at that)

Going to offer $50k but willing to go up to $60k.

Market rent would be $850-900 a month (as verified by my realtor)

Can't figure how to put the property report on here from an iPad, so I just took screenshots of it.

Am I missing anything else? Thanks for your time!

On your analysis you put a down payment of $6k. On a single family investment most banks want 20% down.

Anyway that's getting ahead first if this is your target city go out and view 40 houses and pick the best house in the best location. Have you gone out and viewed enough homes to say this is the best one on the market?

Also find out what the cap rate other investors are getting in your city. Then you will know around what price you need to buy in.

I comp it at $50-55k (though just a quick comp, still new at that)
Going to offer $50k but willing to go up to $60k.

If your comp numbers are accurate at around $50-$55k, then why would you want to pay more than the market value? IMO, one of the worst things you can do in real estate is over pay for a property.

I understand that this is your childhood home and if that holds some value for you and you are okay paying $5k for that feeling, then that's fine, but strictly looking at it as investment property, I wouldn't pay more than what the market value is. I look to buy properties where I am all-in at no more than 80% of ARV.

If you are getting a loan on the property, then you would have the issue of appraisal and you would have to bring more money out of pocket.

@Eddie T. I wasn't planning on making Titusville my target market. I live in Jacksonville, FL so I figured that would've my target. My plan as of right now only involves the purchase of this one house. If it performs well, I may be open to more in the area.

@Sharad M. The house appears to be in great condition, so I am willing to pay closer to the market value. I would prefer to be below $50k. This being the first home that I would be putting an offer on, I am unsure just how lowball an offer I can make. If they are asking $73,000, how low should I be willing to start out at before they just toss me aside?

Thanks for your feedback!

Josh, you make an offer for what you think the house is worth to you and stick to your numbers. The first property I ever bought was listed for $65k. I offered $20k and settled at around $22k.

Hey Josh, glad to see you're making progress!!

List price should have no influence on how much you're willing to pay. It could affect the number I choose for an initial offer, but I definitely don't budge on the max number. Don't be afraid, Josh!

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