What price range should I spend on my 1st home/Investment?

[Steven DAmbra]

I have fund n grow pending on a decent loan I'm about to get, (projecting 40-130k) and also want to use my IRA money, roughly 15k. I want to buy either a single family or a duplex, something that needs a little fixing but liveable (because I have to live in the property at least 6 months to use my Roth IR first time home buyer exemption on being penalized) SOOOOO I live in Providence, Rhode Island and I'm wondering what is a good amount to spend on a property like this? im planning on living in it/upgrading it for the first 6 months then use the BRRRR method to take equity out to buy another. I hear you don't want to go too cheap if your planning to re-finance using BRRRR because you want there to be a good amount of equity left. What do you guys think? much appreciated

[Sam Albert]

Steven,

The short answer to this question is this. I would say, conservatively, the average sales price of a single family (in great condition/rehabbed/updated) in a good neighborhood of Providence right now is $210k-215k. For a Two Family $210k-230k. 

Generally you want to buy a house that needs work for no more than 65%-70% of that sales price. For Example. If you know a single family near Lasalle, once renovated is going to be worth $225,000. You want to buy it for $146,250. That's using 65% of the After Repair Value. 

I'll reach out to you in a Private Message if you want me to explain further.