Is this a good deal? (Newbie needs some guidance.)
howdy BPr's,
I'm considering making my first offer on a property and wanted to get some advice and feedback before pulling the trigger.
Here are the stats:
Asking price: 140k - haven't started the negotiation process yet, I wouldnt pay full price
- purchased for significantly less in the recent past and is clearly a flip
- new: water heater, furnace, roof, windows, kitchen, bathrooms, some new drywall, Wood laminate floors other minor improvements. Place looks great and the work was a B+.
Single-family home built in the 1900s, converted into a duplex.
First floor is 950 ft.² two bedroom one bath - ($950 min rent maybe $1200.) (average is $989 per rentometer and this is a WAY nicer than average.)
Second floor is 500 ft.² one bedroom one bath with separate entrance - ($550min rent maybe $700.) (average rent is $689 per rentometer.)
- I'm trying to be as conservative as possible with my numbers so I don't get Burned later.
Two car garage with new electric garage door open ( bonus for the big unit.)
Driveway with spots for additional vehicles (2)
Unfinished basement which I will add coin op laundry to. Possibly be converted for storage or a small rec room ( not sure if it's really worth it.)
Both Have a separate electrical and gas meters but would share one water heater. Also both of separate thermostats, but only the downstairs has air-conditioning. May have to buy a window unit or two for the upstairs
Piti - $975
Trash - $15
Water for both units - not sure... $35?
Area is a C+ or maybe just a C.
Needs: dishwasher ($500 I can do the install.) coin op laundry machines. Maybe one or two window ac units.
I had my uncle, who is an architect by trade, take a look at the place. He seems to think everything is sound and thinks that the only things that maybe be done would be a new porch within the next five years and possibly new stairs (outdoor) which lead to the second unit within 5 years.
My plan is to owner occupy the first level and life hack my mortgage until I can purchase a second property. Putting only 20% down would leave me about 40k in cash to play with, but I don't make very much money on the books so I'm concerned financing might be an issue. I suppose that's for another post though.
Any and all feedback would be appreciated