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HELLO EVERYONE! I wanted to get your feedback on this 2 family. It looks like the exterior will need some work along with some updates inside. I think thou getting this for cash aka no interest! Would make the buying quicker and easier. I could also get it rented I think after the winter which is when you want leases to start anyway. I am just not sure about the deal. Any feedback would be greatly appreciated. I am also unsure of the rehab costs 100%.
My first reaction is shock that you could buy a place for 25k, put in only 25k of renovations and the value would be 100k. I don't know your specific market, but that's the number I would focus on. Maybe you've done the research on comparables and it does make sense. The rent and expenses seem reasonable, if value is 100k then rent for 1,800 makes sense. I would build in a reserve fund for your cash, instead of 53k I would budget for 60k-70k at least in case you run over on rehab or during the 6 months of rehab you have utilities, property taxes, etc. Looks like the perfect property to BRRR after you rent, pull your original 50k out and lock in a low interest rate so you leverage up and make even more return on your money. If your numbers are right this is an incredible deal. Be sure to get a really good sense of what would need to be done and do as much detail as you can projecting that rehab cost. Good luck!
@Dan Cournoyer and @John Leavelle Thanks very much for your feedback. I am still really on the fence on this one. I am unsure what the new value will be in the end of all this due to the lack of comparable properties in the area. We will see if it stays on the market for a little bit and maybe I will put in an offer. Thanks again for your help.