Buy and hold rental analysis
Looking to use a part of my savings to pick up an investment property and become a landlord. Let me know what you think of this property.
1000 SQFT 2Br/1Bath in Hammond, Indiana. 7133 Hohman Ave. Supposedly good rental market for blue collar Chicago workers. B class city per Niche.
Asking price: 89k
DP: 20% 17.8k
Rehab budget: Inside is good condition, but dated. 3-5k for new appliances, fixtures, countertops, etc.
PITI: $485
Average rent in area: 1-1.2k
With 50% rule that's around $250 a month cash flow.
Is it worth it to try for 5-10% conventional loan since it's not distressed? Best case scenario would be to get it for lower than market value to BRRRR it, but don't see that happening since it's on market and not distressed.
Let me know if I'm on the right track or there are other variables I'm missing.