SFH Purchase in New Castle IN?

[Roman S.]

Hi Gurus, I am about to acquire a SFH 3/1.5 1250 sq in New Castle IN from a turnkey. Price is 130k, and it was just leased for a year at $1175. Schools around 5-8 and not too far from the freeway. I will do 25% down with 30 year fixed. I know this area likely won't appreciate much, but the place has a new roof, furnace, HVAC and water heater as well as nicely updated kitchen and bathrooms and almost all new windows. I will probably cashflow around $200 a month or maybe even more considering I have most of big ticket items are new. Is this a worthwhile investment?

[Jonathan James Look]

Hey @Roman S.,

I suggest running your numbers in the calculators on BP, dealcheck.io, and/or your own customized spreadsheets. You should also research the general economy and consider the employers in the area (a variety of employers is good). After that, factor in the neighborhood (can you get current photos/video of the area) and take a look at crime stats (is there an abnormal rate of crime relative to other areas, etc).

If all the above checks out, then why not? I will say your RV ratio is a bit low though, and I'm targeting > 1% for future acquisitions, but if this is your first, then getting your feet wet isn't bad.