4/1.5 Buy and Hold deal
Hey Everyone. I was hoping you could help me analyze a property I put an offer in for. It'll be my first one, and I'd prefer something smooth to learn from, rather that a headache (but that's what everyone's looking for right?).
1,300sqft Single Family Home in Michigan
4 Bedrooms - Three upstairs, one downstairs connected to the living room
1.5 Baths - Half bath upstairs, full bath downstairs
Asking price: $63,000. Offered $55,000
Estimated rent: ~$1100-$1200/m
Taxes: $875/y
30y Traditional loan. 20% down.
Needs:
- Complete interior paint & wallpaper removal
- New carpet throughout
- Tear off of roof in next 5 years (6 layers of shingles)
- New furnace in next 5 years
Pros:
- Large square footage
- Corner lot
- Aluminum siding looks good
- Decent sized kitchen with newer (but different colored) appliances
- Newer windows
- Upscale neighborhood
- Good school district
Cons:
- Next to the highway, quite noisey
- The bedroom/bathroom configuration is a bit odd
- No garage (think michigan winters)
What do you think? Good first investment?