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Updated over 5 years ago,
Elm vs Jefferson for first rental!
I am looking to buy my first rental and would like a bit of help on which one to go with. Both properties have expenses of $1900 (includes the 5% and 10% expenses) or so and I am responsible for water/sewer only. I will be putting 20% down and live in a different state but the drive is about 3 1/2 hrs. I do have a family member in the town and was planning on getting a manager which I figured into the expenses.
Elm is 3100 sq ft duplex with 3-4 bedrooms per side and they are asking $190,000 taxes are $5400 and has been on the market for 6 months (not unusual for this area). It has a new furnace on one side and the other side will need to be replaced soon. It does need the floors sanded and stain in one unit and walls painted and some minor carpentry work. The exterior could use some paint to freshin it up a bit. Elm st has a year lease tenant paying $1100 (market says I could get up to $1300) who just moved in. The other side is being used by the current owners daughter and has a dog. She does not pay rent and will move out when the house sells. The owner has terminal cancer and is liquidating his assets. The house was purchased in 2008 and is assessed for $190,700 by the town. The big selling point is it has a 4 car garage across the st which could be rented out to tenants or others probably for $50-100 per.
Jefferson is 3600 sq ft with 3 bedrooms per side and they are asking $175,000 taxes are $5400 and has been on the market for 22 days. The house is made mostly of stone on the outside and is in good shape. The curb appeal is lacking and the home seems a little dark but with great wood accents. The house is huge with great storage and some what updated kitchens. The back of the house is used for parking and can handle 4 cars easy. Jefferson has a current tenant that is very sick and this makes viewing hard to see. I am currently unaware of what she pays, but have seen the units on Zillow and they are asking $975 which my agents says is way to low and I should be getting $1100 - $1200 easy. The owner purchased the house in 2004 for $80,000 and the assessed value is $189,000.
Thank you for your input I am very excited and nervous.