Posted by B.L.Renfrow on June 07, 2000 at 09:57:14:
If you are confident about your rehab figure, carrying costs should run you around $1050 or so per month, using the figures you supplied. If you have to hold for more than a few months, the profit starts to disappear pretty quickly.
And, that doesn’t take into account any advertising expenses, closing costs or broker commissions if you have to list it for sale.
If you are looking at it as a personal residence, it might make sense. I still think it’s tight for an investment property, though. Of course, other things to consider are what the neighborhood is like, and how the market is in your area. If things are such that you feel you could move it quickly, it might be do-able. I am not trying to be discouraging, but especially for a newbie, I suspect better deals are available with a little more searching.