Updated over 10 years ago on . Most recent reply
NEW LEAD: 3bd/2ba, 1466 sqft house for only $9900...
Everything in me is telling me to hop on this. But there's that little voice chanting, "This is too good to be true," in the back of mind.
Motivated seller wants $9900 for a 3bd/2ba, 1466 sqft house in a rural town in south Georgia. It's definitely the very definition of distressed. Here are photos:
(right across the street from $9900 house)
(neighborhood in opposite direction of previous photo)
... It's a pretty decent neighborhood as you can see. The seller included that it "Needs work - New Kitchen, Kitchen floor, Bathroom and overall rehab." From pictures I estimated about $15000 in repairs to bring it up to ARV. Recently sold similar properties nearby went for $39-41K. That's been the going price range for about a year. According to Rentometer, avg. rent in the area is $833.
If I offer $8000, I'd only be in at about $23-26K (leaving a little wiggle room for extra repair costs).
So with these numbers...
ARV: $40k
Repairs: $15-18k
Price: ~$10k
Avg. Rent: $833
Is this really as good of a deal for a buy & hold as I'm thinking it is? I'm a newbie and still trying to wrap my mind around CoC & Cap rates. Would this attract a lender?
Should I start looking for a lender?
How does repaying a lender work when you hold, repair and rent a property?
Will a lender fund 100% of the purchase and rehab?