SFH in Western Maryland
Hey BP,
Got a deal I'm agonizing over. It's a 1000 sq ft, 3 bed, 1 bath victorian duplex built in the 1890's. The asking price is $25,000, and it needs 10-15k in repairs, mostly cosmetic (i.e. resand/stain floor, drywall work, paint, etc.) The wholesaler is saying the place could rent easily for $800, which I confirmed with rentometer.com.
That being said, I'm agonizing over the cash flow for the property. I know what taxes and insurance will be, but since I've never done this before I have no idea how to estimate the cost of future repairs, property management, etc. I just pulled the rest of the figures out of thin air, they are as follows:
| TAXES | 1006 |
| INSURANCE | 1000 |
| propert mgmt | 1152 (12% rent?) |
| utilities | 1000 (?) |
| advertising | 300 (?) |
| repairs | 3000 (?) |
(I'm actually not sure who pays for the utilities - I thought the tenant did, but I saw it in the BP analysis list, so...)
If that's the case, this place only cash flows $196/month, or $2352 a year.
Do these figures look right at all?Do you think 3k/yr for repairs is too much (hopefully not too little?) I'm hoping something is wrong. If they figures are right, is this a deal you would do?