First time deal. On the fence about this property!

[Tamyra Campbell]

Hi BP Fam,

This is my very first deal after being a renter for 10+ years in East Dallas. The property that I'm inquiring about has 3-parts to it. The main house is 1324 sq ft. The Duplex in the back, (that's currently being used as storage) is 1400 sq ft.  And the property also includes a mini guest house, that's 616 sq ft. All together the land lot is 7492 sq ft. The main house is ready to move in, the owner has added upgrades to most of the features. The mini house has a tenant that's been there for about 8 months. 

Now my main concerning is the duplex - it needs a major renovation! (Which would be ideal for my elderly mom to live in).

The owner is asking $349k. Similar houses in the neighbor are going for $320 - $390. The property was built in 1933 so it has charm and character, which appeals to my creative side. 

I'm wondering if this could be a bad first investment because the house has been on the market for several months. It's also, has dropped it's price by $27, 000 in the last few weeks; which brought it to the current $349k.

I'm going to see the property again tomorrow with a few friends who are experts in the building industry - just to make sure I'm not getting in over my head; but at this point I really admire this property. 

I know it's going to be at least a good $100k and a 1-year commitment just to get the investment property up and running completely.

Should I stay the course, and see it through and negotiate a better asking price - because of the major renovations need...or as a beginning investor, should I start with a bit smaller house? Any advice is appreciate. 

BTW...if your a real estate investor in the (Dallas 75214) area, I'm looking for mentorship as I begin my investment journey. Thanks guys!!!

Tam-

[Account Closed]

My thoughts -

If this is a house you are buying to move into, and to move your Mom into, then this is your home...it's not an investment property.  It's your home.  I would move in, fix up the main house, then work on the duplex out back a little at a time so you can move your Mom in.  Once you two are settled and doing OK, then work on the third place and get it fixed up.

I look at things a little differently...home is where the heart is...especially if you're moving your Mom in with you.  Take care of the family first, get things cleaned up, then look at the next house for an investment and move up.

You could move other folks in, but your Mom is going to want the best for you and she's going to be more stressed out about your tenants than you will be (I know my Mom would be).