cant decide

[Bill Schultz]

I am looking at 2 different SFHs that I like. I can only buy one right now. I cant come to a decision. Any opinions would be good.

1st one
fannie mae home, I could have right now for $53,500
Could rent as is for 750-800 a month

taxes $2,600 a year

1400 sqft
4-5 bedroom 2 bath
new siding and windows
Nice location
Garage, nice yard
dishwasher, new cabinets and central air

This house has some nice features but there is alot of old in it. Still all plaster walls, with cracking. Wallpaper everywhere. Carpet bad in some spots, peeling trim and sills. Laundry hookup in basement but basement is short and not much fun to be in. Most doors dont close etc...

House 2

Privately owned rehabber. Could get for $55,000. Could rent for $650-$700 a month.

taxes $1400 a year.
1075 sqft
3 bedroom 1 bath
new siding, windows and roof
pretty much new everything inside, floors, walls, cabinets, fixtures etc.
ok location
off street parking with no garage
1st floor laundry
no central air
no dishwasher

This house jumps at you more becuse it is so new on the inside. The obvious things it lacks are a garage and AC and a dishwasher. Some friends have told me they wouldnt rent a place without those things, but I would.

I am really struggling on this. The smaller house, I would have to put no money in unless I wanted to add a dishwasher or ac.

the bigger house is well bigger with more ammenties but could use a decent amount of updating.

[Paul B.]

I would not buy any property unless you know going into it how long you plan to hold it and how you plan to get out of it.

Seems like the first one has more resale opportunity down the road. More bedrooms, more baths, has A/C, etc. Also appears to rent for more money relative to its cost.

The second one seems have to been done for a retail flip, but I don't know that I would ever buy a 3/1 for that purpose. No garage, no A/C, no dishwasher...no thank you!