Offer on 1st ever home was just accepted.....

[Derrick E.]

Hello Everyone,

I just wanted to finally stop the lurking and post. I actually might have made a few posts years ago on here, but I've been reading this board for years.

Up until this point our only investment experience is when we bought a chunk of land and sold it for a profit. More luck than anything else, we had planned on building a house there.

Anyways, we just had an offer accepted on our first rental investment. We are planning for this to be a long term SFR.

We will be getting a home inspection completed. We already know it has an estimate of $10,000 worth of work to do in the basement. The seller had an estimate on the repairs done just a few weeks ago. The house was built in 1954 and there is some water getting into the basement and there is a small structural problem in the basement area that has caused one of the walls to bow a bit.

I plan to have it checked out and ask if this is just something that this house with old age did years ago and its been the same ever since, or is this something new that is getting worse each day and needs to be fixed. Or would some of you guys just say to suck it up and go fix the issues now?

We had an all cash offer of $30,500 accepted just a few hours ago. It isn't the best neighborhood in our area, but it definitely isn't the worst. This is a 3BR/1BA, 1,300 square foot with a decent little fenced in yard. It's a corner lot right across the street from a nice day care center. The street neighborhood has a couple houses nicer than ours, some comparable houses, and a few that are run down and/or condemned. 

We expect to get somewhere around $800/month in rent. Property taxes are around $400/year, and I'm not sure what insurance costs.

Looking at those numbers, do you guys think this is a good deal? $30,500 purchase price all cash, expected rent of $800/month, property taxes $400/year, no idea on insurance. $10,000 in repairs.