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Updated almost 2 years ago on . Most recent reply
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unsure which house to choose for my first deal, and what about MTR near a hospital
two deals to see which one to go: all will be 30% down, 6.25% interest, but two different areas in the same city.
1. 1957 SFH 3b1.5bath in a B neighborhood, 330k purchase price, renovation budget 30k (floor, paint, AC, kitchen cabinet paint), target tenant is a working-class family with kids (right next to an elementary and middle school), rent about 2200-2300.
2. 1940 SFH 3b2bath with good bone, 480k asking price, on the market for 90 days already, the targeted purchase price 440K, renovation budget 50k. The location is right next to a teaching hospital, basically on the campus of that hospital, can also build 1 or 2 ADU. SFH in this area usually sell for 600K+, but there is another one listed at 525k nearby with older interior. It will work out if I can rent the house furnished to travel nurses or medical residents (for example, 1000-1200 a room). Neighbor house Zillow estimate 1.1 million. I don't think it's a neighborhood for family since no school nearby. It's more of an old established neighborhood. I am confident to do a flip in the current market. Maybe I can, but I have to prepare to hold this house.
I think potentially house 2 will have a bigger profit in 5-10 years. Question is how I can find ways to advertise the house to hospital travel nurses or residents? Do they like to live so close to the hospital? Or they would drive a little to get an apartment?
another question how hard can we bargain for flix uppers that's on the market for a while? I was following a house listed at 399k and found it was sold at 320k then flipped now listed at 495k. Is that normal to just go 20% off low ball for a fix upper?
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Another audience to target would be insurance companies looking to place people in furnished homes while their damaged home is being rebuilt. The good thing about this is you will be getting paid directly from the insurance company. I don't have a company to direct you to as my aunt uses a local one but that is how she keeps her furnished rentals occupied.