Please Evaluate my Deal

[Matthew Amabile]

Please Evaluate my deal:This is a cash deal being done in NJ. If there are any numbers that look low, please let me know. I plan to have this as a buy and hold for a while. This is a mostly CASH deal in west New Jersey.

Purchase price: $85k

Closing costs: $4k

Current rent: $1350 section 8 tenant with $1k guaranteed. The tenant has lived there for 5 years and wants to stay another. ALL utilities covered by tenant. Current area rent is $1500 on this size home.

Taxes: $2800 Annual

Financing: Full cash with $35k loan from investor at 10% until refinance

Refinance: I plan to refinance as soon as possible. I have gotten 3 estimated valuations on the refi in its current condition; they are $129k, $120k, and $110k.

Value Adds: With new flooring, paint and countertops (I estimate $20-25k) this house can sell for $150-160k.What are your thoughts on this deal? I plan to slowly remodel the home over the next year and just collect cash flow while it's being worked on. If I need anymore information, please let me know.