Looking at a house in the 19119 area.
This one is a three bedroom (really two bedrooms and an office) one and a half bath with a small yard.
I'm thinking of offering 140,000 with a zero down loan and tying all purchase costs into the loan, bringing the mortgage to 155,000, with a monthly payment of $830 which includes taxes and insurance.
It needs some roof work, Im going to refinish the cabinets, and change the closets around. All told probably under $10,000 in renovations.
Rents are in the $1250's....
Does this make sense? I feel like its a winner. Am I wrong?
Any Advice is hugely helpful for this NEWBIE!!
Are you going to live in it? Have you thought about asking for closing costs? Be careful about the 10k renovation as you might not be able to roll that all into the loan. As for the numbers, that would work for me but everyone has their different opinion on what "good" deals base don their market.
Interest at 5% on $155,000 is $646 per month. A 50% expenses ratio on rent of $1,250 is $625 for a total of $1,271.
I agree with @Bill Jacobsen your going to need a more detailed analysis on the property cause the first glance look says no.
@Bill Jacobsen @William Baumann
Ive secured a 30 year fixed loan in my own name for 3.75%
Taxes are 1250
Insurance is 560
I calculate the mortgage to be $830/month...
The place is recently rehabbed. My plan is:
I am going to live in it until I update a few minor areas and have the roof repaired. I plan to: install custom closets, tile floor in bathroom, sand and repaint kitchen cabinets.
After this rent it. Then move on.
Assuming I do much of the work, I can spend 10k and get the rent to $1250, that leaves $400/month to build a cushion for expenses.
(probably more but I want to be conservative)
its not 50%, but the place is in good shape and next anticipated expense is new heater in 3-10 years...
What other information would help people get a picture of how bad / good this one is...
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