Please check my numbers on possible rental property
Hello BP community and thanks in advance for all advice and help.
- Looking at a forclosure that is listed at 16,500 in an area that supports an ARV of 45K. My repair estimate to get to good rental condition is 15K. We have a rental in the same neighborhood that is almost identical, except our home does not have a one car garage like this one does. We are currently renting our home in that area for $600/month. We have a local credit union that is willing to lend to us for "project homes" up to 50K at 5 ish percent and then we would refi after the rehab was done. Does this scenario seem to make sense? What advice can you all offer. I know there are a million things I am overlooking as far as costs etc. Also, I am located in Battle Creek, MI.