thefed
Thinks s/he gets paid by the post
- Joined
- Oct 29, 2005
- Messages
- 2,203
I always have an ear to the street for good RE investment opportunities. I have a line on one that I think might be a winner.
First, remember that this isn't California with grossly overpriced homes. I found a small (800 sf) 1 bedroom slab home in Akron that needs rehabbed for $16k. Taxes are 1400/yr (double lot). County appraised value is 46k, comps are coming in around 50k. Might be able to make a 2nd bedroom out of the wierd layout,m which would help when reselling.
I can repair everything for under $10k...no problem. I have a close friend who's willing to rent it for 500/month while it's put on the market to sell. He may stay longer if he likes it, but is willing to do the small restoration stuff while living there (tile floors, cabinets, bathroom fixtures, paint, landcaping etc)
It's not the best area, and definately not the worst. I dont like the idea of collecting rent, and really dont like the idea of selling a one bedroom home ...they sit too long.
All in all, I would sink about 26 into a home I 'could' sell for 46k. While I hold it, rent would provide me a cash flow of about 150-200/month (160/mo interest only HELOC, 130/month taxes and insurance).
PROS: 20k equity, 150-200/month cash flow, 300/month piti is very low if not rented, break even for a year would be 40% vacancy.
CONS: ONE bedroom, harder to rent or sell, not the best neighborhood for attracting quality tenants
my intentions are to buy a home, and flip it for at least a 10k profit. If not, rent with a cashflow of 200/month.
What do you all think? I hear a lot about the pitfalls of renting homes, but that's why my first p.o.a. is to sell it right away. Renting is the contingency, unless my friend would liek to stay there.
First, remember that this isn't California with grossly overpriced homes. I found a small (800 sf) 1 bedroom slab home in Akron that needs rehabbed for $16k. Taxes are 1400/yr (double lot). County appraised value is 46k, comps are coming in around 50k. Might be able to make a 2nd bedroom out of the wierd layout,m which would help when reselling.
I can repair everything for under $10k...no problem. I have a close friend who's willing to rent it for 500/month while it's put on the market to sell. He may stay longer if he likes it, but is willing to do the small restoration stuff while living there (tile floors, cabinets, bathroom fixtures, paint, landcaping etc)
It's not the best area, and definately not the worst. I dont like the idea of collecting rent, and really dont like the idea of selling a one bedroom home ...they sit too long.
All in all, I would sink about 26 into a home I 'could' sell for 46k. While I hold it, rent would provide me a cash flow of about 150-200/month (160/mo interest only HELOC, 130/month taxes and insurance).
PROS: 20k equity, 150-200/month cash flow, 300/month piti is very low if not rented, break even for a year would be 40% vacancy.
CONS: ONE bedroom, harder to rent or sell, not the best neighborhood for attracting quality tenants
my intentions are to buy a home, and flip it for at least a 10k profit. If not, rent with a cashflow of 200/month.
What do you all think? I hear a lot about the pitfalls of renting homes, but that's why my first p.o.a. is to sell it right away. Renting is the contingency, unless my friend would liek to stay there.