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Kelly Beasley
  • New to Real Estate
  • Vail, Az
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88
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Deadline TOMORROW. I CANNOT make up my mind. Emotions? Bad idea?

Kelly Beasley
  • New to Real Estate
  • Vail, Az
Posted Jul 30 2020, 00:22

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*This link comes directly from our calculators, based on information input by the member who posted.

I have this under contract for 146K. I'll do owner-occupy but I will actually live in my RV on the property, and will also travel some. I'm guessing I will have PMI. (BP calculator doesn't seem to add this or let you add it)

It's SW of Tucson, about 19-25 min away from the amenities commonly used... Walmart, Tractor Supply, Lowes. Three feed stores are within maybe 15. 

So it cash flows of I can rent it at $1,700. The house needs a LOT of work. The whole place does. Lots of deferred maintenance. Needs new roofs (2) and new carport roof. Slated to cost 5,500 for house/carport and 12,000 for the barn.

I thought this would be a good property as it is on a great street, pretty much no neighbors, at the end of the street so nice and quiet. I would live on property part time in my RV as would my business partner. Was going to fence off an area and give us our own gate. (More $$ I haven't accounted for in the calculator)

At first I thought I could get 2K/month for this huge 11-stall barn and house on almost 5 acres. I got laughed at a little on FB when I posted it for rent. Yikes. The house is definitely small. 1br 1ba, 1080 SF. Rents in the area seem to go for 1100 to 1400, but for more sf, but WITHOUT horse amenities. Why not ask for more if a person can keep your horses in their backyard?

It's a rural area so comps are challenging, but there has been a LOT of interest in people BUYING the property. 

So, it would give me a little cash flow, it would give me something to do (projects), it would give us a place to 'land' for a while during Covid, and was thinking it would help me and my business partner start putting together a team. We are considering investing in and around Tucson so it would be nice to stay in the area a while.

But I want MORE ROI. Maybe I am being greedy? I am so 50-50 on this one I thought I would share.

Truth is I will likely spend more than I listed on the rehab. It needs more paddock fencing, stall accessories, maybe a round pen. I love spending on that kind of stuff. I want to paint the giant barn. That's $$$. 

I want it. But I also want more cash flow. 

Is this a good deal? I know, I know. It depends on what I want/my situation/my ROI personal base, etc.

Still. Help? 

Maybe I am missing something?

I am cheap. LOL!!! Grrrr. This is hard. 😂  The good things are the hardest?

This is not my first RE purchase, but it IS my first that will be purchased for investment. BUT at same time, I am house-hacking it for now. Still, investment property, yes. 

Tomorrow is the end of my 10-day 'grace' period to back out or tell them what I want them to do. There is a cash buyer behind me waiting if this falls through for me. So they aren't going to come down on price much dangit. I was going to go WAY down, to about 100K with all the repairs it needs. Well, that ain't gonna work anymore.  😂 😭

Thoughts?

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