Need Advice on my first deal

[Brendan Flannery]

I finally think I am ready to buy my first rental property.  I just need to know what everyone thinks.  The house I am looking at is 125K, but needs paint, carpet, AC, and foundation.  The total for repairs is about 11K.  I can get a loan for 136k with 15% down @ 6%.  After repairs the property would appraise for $160k and I would rent for $1400.  I just need some advice, and motivation to do this deal if it is a good one.

Thanks

[Jarrod Weaver]

Homes with cracked and/or repaired slabs in Texas are stigmatized. Meaning it won't be able to capture the full ARV of the comps without similar issues. It doesn't matter that the repairs come with a lifetime warranty. These homes are a specific target we look at for cash flow because they can be purchased at a DEEP discount. I'm not sure that your deal is discounted enough for the issue. Use it as a negotiating tool and get a better deal. Try to pull comps on just broken slab homes and see what the numbers say.