Posted by bb on December 08, 2000 at 12:58:48:
Property: SFR 3bed/1bath, Listed @ $50k. Needs new paint, carpet, landscaping and other minor repairs.
Surroundings: Same size 3/1 house 6 lots away just rented quickly for $750/mo. Somewhat nicer than my potential purchase inside and out. Neighborhood recently had numerous sales and buyers have been fixing up properties and improving the neighborhood.
Personal Info: First potential NOO purchase. Recently became interested in real estate investing. My FICO 680. Wife’s FICO about 615. Only have $1k to put down or use for fees. Ratio’s with no rental income figured will be about 30/40 after purchase(assuming PITI of $500). Only marginally handy. Would likely pay to have most work done on the property.
Goal: Cash flow. I’d like to rent the property indefinitely. If a tenant were very interested in purchasing I’d sell. Would like to pay off the property, cash out 80%, and repeat process.
Roadblocks: I don’t know the owner’s motivation for selling or what loans/liens are against the property.
Note: Debt Ratio is based on my gross income and my wife’s taxfree income of $2200/mo.
- Is this property worth pursuing?
- What should I offer?
- Are my goals realistic in general?
- What is the next step?
- Any other advice?