Buying & Selling Real Estate
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal


Real Estate Classifieds
Reviews & Feedback
Updated 2 months ago on . Most recent reply

Please help new investor!
Hello community!
New investor here need advice on a deal I am about to do. Feel free to roast, criticize or give any advice you have I can take it. Backstory: 22 years old about to get out of military after first contract. 70k cash saved up & 775 credit score, no debt. Looking to buy duplex to live in and ultimately renovate if the numbers make sense. I am approved to use VA loan at 5.5% guaranteed. Here are the numbers:
Purchase price: 300k @5.5% (might be able to negotiate new exterior paint job credit)
Monthly costs: mortgage- 1703 tax-245 (2933/yr) insurance- 167
Market rents are 1600$ easy for both sides as is but currently being rented at 1410 and 1325 tenets pay all utilities (separately metered)
Planning on putting aside 20% of rents for Maint, vacancy, capex and will be self managing property.
Property is fine as is but if fully renovated in my market I estimate 500k-550k ARV. This is a 2500 sq foot 3 bed 2 bath both sides. After renovation rents would be 1900-2000$ so about 4,000$ total rent for both units. If I did the BRRRR method would this work out perfect? 300k purchase + 10-15k closing + 80k remodel + 5k for refinance costs. 80k remodel number I got from my father who is a general contractor in the area. 500k ARV x .80% refi (because it would be my primary residence) = 400k minus 15k closing, 80k remodel, 5k refi cost = 300k my original purchase price.
Property details: 3 bed 2 bath both sides with attached garages, aluminum siding, copper plumbing, 1972 construction, separately metered, all electric water heater, range, dryer, public water and public sewer on a slab foundation in a great school district right next to brand new construction everywhere.
My only cash investment would be the 10-15k of closing costs as of right now. I am very very new this is the first house I am ever buying.
Any advice is welcome. Am I getting a good deal as is? Should I keep it as is or renovate? Do numbers look accurate?
thanks!