Bad, Good or Great Deal?

[James Syed]

Hi BP,

I will be submitting an offer to purchase my 7th property soon.

I'd appreciate it if some of you could give me your opinions as to if it's bad, good or a great deal.

It's a 2 bedroom 1 bath, 1100 square feet, 1 story, single family house. In addition, it's a Freddie Mac foreclosure. Built year is 1945 (approx), vinyl exterior.

Purchase price $23,250

Closing Cost $2000

Financing is 70% LTV @ 5.25% fixed for 5 years, amortized over 20 years (portfolio lender)

Repair Required $5000

Monthly rent $550 a month

Property Taxes $910

Property Management 10%

Annual Capital Reserve $1000

Annual Repair & Maintenance $800

All utilities will be paid by tenant.n

Thank you.