If your comps are correct, at 175K and you can get in at 134K, then yes, it sounds good in terms of $$$.
Now, even better would be to get in with NO money down.
It sounds like your out of state owner seems “motivated”.
You, can offer to take over his financing “sub-2” where you would leave the loan in his name and make the payments to the lender for him.
Just make sure you don’t have to make any payments for 2-3 months or, when you secure a T/B for the property.
It sounds like you could even advertise this property as a “handy-man” special. Or tie the property up and flip it to another investor/rehabber.
It depends on what your situation is and what you want to gt out of the property. Looks like it could have a pretty nice back-end!!
I’m getting ready to pull the trigger on my first Rental Porperty, but I must admitt I’m a little nervous. Here’s the scoop:
4 bed, 3bath, 2 Car garage, 2,220 sq ft., nice yard for $134K. The average property in this neigborhood with similar square footage list for $175 to $180k. The reason for the low price is the owner lives out of state and doesn’t want to deal with renting it anymore. On top of that, it needs some TLC…I.e., Inside/Outside need painted, new carpet, some updating in Bathroom and Kitchen. I’m thinking I would need to spend about $10k to bring it up to good condition. After updating the house, I could either keep it as a rental for a couple of years or try and flip it by selling it for around $170k.
Any thoughts from experienced investors on whether or not this sounds like a good investment?
Re: Need advice, First Investment Property?? - Posted by JasonWDTX
Posted by JasonWDTX on April 23, 2002 at 15:15:08:
Make sure your repair estimate is accurate. If its your first deal, then make sure and get professional advice on the cost of repairs. If you mess that up your whole deal can turn bad.Hidden repairs can eat away your equity.