1st Property Purchase (Potentially)

[Kyle Cuppy]

I am looking to buy a property, live there and rent out. I am asking for other peoples opinions if this is a good deal and why. The house layout is more like a frat house meaning lots of bedrooms or potential bedrooms with a shared community space, kitchen and parking spaces. Here is what I know.

Current Numbers

$500*8 (tenants) = $4,000 monthly income; $48,000 annually; All expenses would be paid by the owner

unfinished basement

What I believe they could be after the first 18 months of owning the property. The property would need about $30k of capital to fully build out the home and maximize the space. I would try to do as much of it as I could by myself.

After 18 Months

$550 for 2 person rooms * 10 people = 5,500

$600 for single person rooms * 8 people = 4,800;   Monthly rental income 10,300; Annual $123,600

-  All expenses would be paid by the owner. Roughly $40k a year (includes the mortgage and property taxes)

My purchase price is $470,000. I am currently looking to go through a credit union, but am looking at other options that could be more stream line versus a bank route. Any ideas?