Updated about 9 years ago on . Most recent reply
My first property under contract! Advice would be great!
As of this morning I have an accepted offer and my 7-day option period has begun. I have a quick question though about the property which is a 3/2 front house with a 2/1 back house (but really is a large 1/1 since both bedrooms are attached to one another). It's located in an area that will more than likely not appreciate and is not that great of a neighborhood. It's easily the nicest house in the neighborhood and is turn-key ready to rent out. I plan on purchasing it with an FHA 3.5% down with a down payment assistance program for a rate of 4.5% APR to have a mortgage roughly about $1,000. The front unit will rent out from anywhere near 1200-1500 (not really any comparable comps as this house is 1800 sq ft and most local comps are renting for $1,000 but for 900+ less sq ft and at least one bed/bath less) and the back unit I've already got interest in it for $450-500. So at worst I could be getting $1700 up to $2,000 while the purchase price was 125k with 5k in sellers concessions (closing costs, etc). No work needs to be done whatsoever for it to be rent ready (excluding a couple things with the back house which I plan to negotiate after the option period). So my main question is... what are your thoughts? I'm getting roughly 1.5-1.7% with hardly any money down. I'm pretty happy with the deal and my goal with it is to rent out both units until June, then live in the back unit for the summer, then purchase my second home in August when I move with my VA loan. Any insight would be great! If you need more info on the property I would be more than welcome letting anyone know as well.