Your thoughts? Good beginners deal?
I'm looking at a 3/1 that fell out of contract due to the previous buyers financing. I'm considering putting in an offer of $40k. This house is in good shape with new wiring and partial new plumbing and a brand new roof. The home only has window units and the seller does not have the funds to install central heat and air which is the main thing holding this house back. Here in West Texas, CH/CA is a must to get a house sold. There is already a bid obtained to install the CH/CA for $5000. The ARV (even though all that is needed is the central air) would be $80,000. I plan to have the central air installed after closing and putting the house back on the market to sell. It looks like this house fits the 70% rule. Does this sound like a good deal to get into?
Are there any HMLs that would loan on such a small amount? My concern is that I do not have enough reserves for my other rentals to cover 6 months of PITI. Average DOM is around 100 in my market.
Let me know if I left anything out that is needed to figure this out. Thanks in advance! I look forward to discussing it with you guys.