Property for $20,000 that rents for $600 in a c to d area
I have a property under contract in Phoenix City, Alabama. Its a brick, 2/1, 1400 sq. foot duplex, both sides are rented for $300 = $600 total. There are wall units for AC and has gas heating. I will have a property inspector give me a report later this week. The agreement I have is $10,000 at closing and anther $10,000 in 7 months. If you had this what would you do? Wholesale it? Have a realtor list it? Keep if for a rental and refinance to take all the equity out of it? Or not even buy it at all?
Pros =
1) Rented on one side for 15 years, the other for 2 years 2) Zillow is telling me that its worth $52,0003) There is nothing rented for under $400 on Craigslist in that area.
4) I have it under contract for $20,000
5) I have had an agent/property manager tell me it is worth 65K not to buy if for more then 50K he also has properties in that area. he thinks it should rent for $350 to $375.
7) A property manager went there and told me its not in a war zone,but its a 6 with 10 being the worst.
8) A second agent gave me an income approach and told me if I wanted to sell it I could get about $40,000
Cons=
1) 3rd agent went there and he told me that the area is too rough for him and wont touch it, but has friends that will go in that area.
2) I am unable to pull comps- I have used things like myfirstamerican, Eppraisal, Chase estimator, and not getting
anything, this is also why I have contacted a lot of agents to give me some feed back.
3) I live in California and will have to find a support team there. (But I have other out of state properties and dont mind it)