Updated over 5 years ago on . Most recent reply
First property deal analysis
Hi All! Hoping to get your insight and advice on an old property (1930). I'm new to REI and so I'll take all the advice I can get.
Purchase: $115,500 including closing costs
ARV comps recently sold (2020): $170-$190K
Rent:$1100-1200
Cosmetic Rehab: $18,000
Repairs: $12-15K
Because this is sold as-is and is an old property, there are repairs that need to be done such as foundation bracing, sewer clean out (inspector couldn’t get passed tree root build up), load bearing beam replacements in basement, electric panel replacement, gutter/fascia replacement, And a new water heater.
The floors and paint need to be done but other cosmetic stuff can also wait. It is still rentable without upgrading all cabinets/backsplash etc. The Rehab price above includes full upgrade.
I am really new with real estate and home repairs in general, so Figuring out if this is a good deal to step into is what I’m concerned about. Mostly the repairs not cosmetic rehab part. Any advice or insight would help! Thanks I appreciate it!!