Rental calculations for 120-years old, off-campus house
Hello, BP!
I've been learning to work the calculators for a couple of weeks, just picking random properties from my area. I'm posting this one, because I am seriously interested: I viewed it yesterday. This is a first-run analysis of this property: my numbers may be off, and some are purely speculative.
Based on current numbers, it's not a good deal. House and lot need a lot of work. Foundation is solid, termite damage isn't too bad. It needs a new roof, so maybe take advantage of incentives and go solar at the same time? The one-car, detached garage--to my eye, a carriage house--may extend across the property line.
I don't yet know the seller's motivation, so I can't speak to the possibilities for owner financing. This may make more sense for a contractor. Historic preservation is not an issue, so it could be completely demolished and modernized. The house is near the university, so would make a good college rental. There's also corporate development taking place that would increase housing demand.
I'd love to hear your thoughts and suggestions. If nothing else, I hope you enjoy the analysis. I'll post updates if anything changes.
*This link comes directly from our calculators, based on information input by the member who posted.