Deal Analysis - SFH Foreclosure in Kansas City
Hello everyone! I've entered into a contract to purchase a 3 bd, 1.5 bth 1600 square foot HUD foreclosure in Blue Springs, MO (middle class suburb of KC) for $49,500 CASH. The home needs approximately $30k worth of rehab and will rent for $950. Taxes are $1600 per year and insurance is $1200 per year. The house is in a good neighborhood on a cul de sac street. After repair value will be $110,000.
However, I originally thought rehab costs would be $15-$20k and now I'm starting to get cold feet with the idea of parting with $80,000 of my own cash.
Do I have a great deal or should I forfeit my $500 earnest deposit and walk away and continue looking?
Thank you very much everyone, much appreciated!
Paul~