Phoenix Townhome worth buying?

[Juan Lozano]

Hello BP colleagues and Happy New Year! Would like your advice on the following: Someone close to me would like me to take over her townhome in the 85022 zip code. Unfortunately, she lost her job. She owes under $99,000 and would like me to either take over her payments OR buy it off her at what she owes. It's a 2 bedroom and 3 bathroom town home. HOA has not been paid in years. Under $9000 is owes. ($160 HOA a month). Repairs needed- cleaning, new paint, carpet and second floor (one room) floor squeaks. I am guessing that I will spend between $5000 to $7500 in repairs and cleaning. She owes 3 months on mortgage. I know I would have to pay Property taxes (assuming $850 a year) and insurance (assuming $700 a year). No liens- YET. I think the ARV would be $130,000 - $135,000. If i were to buy it, i would like to rent it between $1000-$1100. Still thinking if a PM is needed. Still not sure. So, would this be a good investment/risk? Appreciate your input.

[Kevin Siedlecki]

@Juan Lozano - Birdseye view of this doesn't look good. Your acquisition is at least $120k, depending on closing costs, and your ARV is only $130k. Add your holding costs and selling costs, and there's nothing left or a loss for a flip. Depending on taxes, you're probably not making any money renting it out at $1000, either. Time to look for something else!