My First Analysis

[Michelle M.]

Hello everyone. My name is Michelle, and I have been lurking on her (through my husband) for about one year now. We currently are doing a live-in flip that could double as student housing contingent upon the housing market this June (July 1st is " one year and one day" for our FHA loan).

Any who, my question is bellow:

I have just joined BiggerPockets and this is my first post. My husband has been on here for a while and has posted before. We are looking at a two unit multi family home  in an area we know pretty well. The home all together is a 7/2.  going rate in the town is $450+\- for a room. It is a college town, with the house being located within walking distance of the college, the hospital, downtown shopping and entertainment, numerous churches, a farmer's market, and two elementary schools. It is a really good location for a rental property.

They are asking $169,000. The house could easily bring in $1800 per month in rent right now, and with about $3000 of work, it could be $3150 per month.

So, following the 50% rule, $1575 could be expected for expenses..

Looking at the tax assessment, the latest value was $173,000

Would you consider this property to be a sound investment?

I would like to know if you have any thoughts on this opportunity.

Thank you all in advanced,

Michelle