Reno Already Done On Possible Buy & Hold Purchase

[William Ellis]

Ok so what if you find a property that was just renovated with new HVAC, floors, roof, gutters, kitchen, bathroom, etc.. to be like brand new? When I run the 50% rule with counting 10% for things like CapEx, repairs and maintenance, etc. and then subtract the mortgage payment I am sitting at about $100 a month. I think the cashflow will actually be better because of the fact that everything is new and I will be the project manager in the beginning. I have calculated 10% in the property management though just in case in my numbers.

Purchase price would be at about 55K. This is a 2/1 older cottage style home in a C+ Neighborhood.  The asking price retail is more obviously but I am fairly confident  if we could make the deal at the above price and be ok. 

Thoughts?

[Engelo Rumora]

Originally posted by @William Ellis:

Anything sub 50k here is a bit of a fixer upper and if i then put 20k in renovations and 5k in hvac and 2k into appliances i am at 50k. Maybe this market is just bad. You can get a 30k house but every one i have looked at has major major issues.  Problem here too is rent is low so it is definitely a challenge.

Check out Ohio and Michigan,

Your not too far away for a day drive ;)

Thanks