Is this house a deal? How do I find out?

[James Ross]

There is a Colorado Springs property I would like to run by more experienced investors (I have just started learning). There is a house in Colorado Springs that has been on the market since November, which is a very long time in this market. They have dropped the price a couple of times. The house is 4 bed, 3 bath, 2500 square feet, 2.5 acre lot on a cul de sac, and is just outside the city limits. It has a few problems that I know of, and possibly others as it was built by the first owner in 1963. The garage was turned into a rec room and the basement has had problems with flooding. It is listed at $500,000. I don't have direct comps, but other houses in the area, updated ones, have sold for closer to $700,000. What is the best way to determine if this is a deal or would require too much to fix up to be worth it? Or would a buy and hold be better (my personal preference, if the deal is right)? Another catch is this is outside what I can afford a monthly payment on myself, but I know some people who could possibly go in with me. I am very new and don't know how to go about finding these things out so any help would be very much appreciated.

[Ken Breeze]

James Ross the best place to start is using one of the free awesome Bigger Pockets calculators. Once you run those numbers, you can even share the whole evaluation with fellow investors here on BP who then can give you better advice.