My first possible deal

[Hector Serna]

Hey guys, so this deal just came into the market. A single family home, 3 bedroom, 1 bath, built in 1959. The home is a short sale listed at 180k. Upon submitting an offer, they responded by saying they’re not negotiating this property, 180k NO CREDITS. My mortgage would be approximately 1.9k and the home needs probably 15k-20k in cosmetic repairs. The home would probably rent out at 2k-2.1k. I’m not sure what to do, should I pursue it? This would be my first investment property. Part of me says no but I’ve been getting extremely eager to just get in the game now. (CHICAGO LAND AREA)

[John Warren]

@Hector Serna with a single-family home, it all depends on the area. What kind of areas is this deal in? Is this a solid area with good schools? Generally speaking, I haven't seen any homes for sale for 180k in the areas I operate in. 

I would also dig deep into the rents. If you can rent the place for $2400, it makes a huge difference. This is not unrealistic depending on where the home is located. 

So much of this really depends on the location for me. There are some areas where I would pick up the 180k house in an instance even if it was cash flow neutral because there is so much equity upside. There are other areas where I wouldn't touch the 180k home with a 10-foot pole.