Posted by GMann on April 21, 2003 at 19:32:53:
ARV = After Repair Value
Thumbs up or down: Is this income property a go? - Posted by Andre
Posted by Andre on April 20, 2003 at 22:41:17:
I want to purchase income property and I wanted to know the groups opinion on a purchase I’m soon to close on. I can walk away now and leave $500 on the table.
My $18K offer was accepted for an 800sq/ft house on a slab. Wanted to start small. (BTW: I had difficulty finding a lender willing to finance such a low amount.)
The place does need a little work but I believe it will be all cosmetic… having an inspector coming after the utilities are switched on ($300 for inspection). I’m thinking less than $7K improvements needed for flooring and patched walls.
In doing my research I found similar homes are renting around $600-$700 / mo.
If worst case I pull $500 / mo, was this a good investment? Assume I finance 80% to avoid PMI.
Up…but… - Posted by Jay
Posted by Jay on April 21, 2003 at 02:36:54:
it really depends on what your goals are. Since you say you want to start small (which I think is very smart) it would appear that this was a good deal. Clearing $500 a month is a GREAT start. Also, because you don’t mention the ARV of the home, I’m assuming that your goals are simply cash flow. Very good deal in that respect. But, one thing to remember is holding costs. How long before someone can rent the place? Anyways, good luck, and good job, Jay
Re: Up…but… - Posted by Andre
Posted by Andre on April 21, 2003 at 05:56:18:
Thank you for your thoughts.
Not sure what ARV stands for but cash-flow is my goal.
Holding cost:
I think that I can have all the cosmetic stuff done in 1 month. I’ll know more after the inspector takes a look.