First (potential) Deal Question

[Martin Harris]

All – Getting ready to (hopefully) purchase my first rental property. Found it on a listing site so it would not be through a realtor. Person is asking around 70% of the value, at my initial look there’s some work that needs to be done, new carpets, painting, perhaps refinishing cabinets to help with the dated look. My intention is to perform the work then rent (Buy \ hold strategy).

I’ve done a bunch of reading on here and other sites, just curious what I need to do to minimize my risk in ensuring it’s a fair deal? Going to get an inspection, property is a condo so I will get all documentation and ensure I can rent w/o huge hoops. Will ensure there’s a title search and insurance before closing.

This would be an all cash deal looking to close fairly quickly, just wanting to make sure I’m thinking of everything.

Thanks!

[Mike H.]

You may want to check on HOA policy if they have material requirements and if you need their approval for internal renovation; make sure you do your due diligent and double check the prices of all material. If you are planning to perform the work yourself and this is your first renovation, make sure you know how things are put together and check 'all' prices. (ie. doing tile means you will need "TOOLS" to cut tiles, mix mortar, place grout. price should not just "TILE' only pricing) those little things tend to be missed during your initial renovation cost.

If everything still adds up right, good luck w/ your first purchase/flip.