First of all super excited to be on the forums posting about my first potential deal! For starters I am young (22) and have had my real estate salesperson license for just over a year now, I also have a full time construction job. One of the associate brokers at my brokerage said that she wanted to sell one of her rental properties.
The property she wants to sell has a mobile home on it and a 2 car garage with a 2 bedroom 1 bath apartment above it. The mobile home rents for 1100/mo which is section 8 and the rents have not been raised in 3 years. The garage apartment is where I would stay and live which right now is rented for 1100 as well. The section 8 tenants have been in the mobile home for 15 years and have no intention of moving, if the numbers work out then I will most likely be putting a contract on it no rehab necessary she said the only thing it really needs is a water softener.
I just want to pick everyone’s brains on here and see what you guys thing as I don’t have any experience yet. Any tips tricks and due diligence is greatly appreciated!
@Account Closed what do the numbers tell you. Here are your numbers $1100 and $1100. Not much information to go on. Purchase price, insurance taxes ,utilities, repairs, vacancy, capex, insurance. How is it going to be financed. Run it through a spreadsheet or calculator, then ask specific questions. BP has both, Calculator is limited to 5 uses unless you upgrade to pro and in the files section there is a spreadsheet. Is it on city water and sewer.
Sounds a bit too good to be true. Does the property have a private sewer?
@Tim Herman thanks for the reply! I am getting the expense list tomorrow to run numbers on it planning on using FHA since I will be a first time home buyer it is on sewer.