Can anyone offer any advice/help??? - Posted by bb

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.


  1. Is this property worth pursuing?
  2. What should I offer?
  3. Are my goals realistic in general?
  4. What is the next step?
  5. Any other advice?