​Should I go through with this deal? Relatively minor repairs??

[Jack B.]

Based on comps look like it is valued between 450-480K.

I’m getting it for 355K but it needs roughly about 15-35K in work (15K on the low end, 35K on the high end if I fix the optional stuff and it costs more than estimated).

I figure even if I pour 30K into the property and it’s only worth 450K, I’m still coming out almost 70K ahead. Buying equity so to speak. Plus the cash flow is great, about 600 a month. And I’d still have money from my 1031 exchange to buy another deal.

Here are the needed and OPTIONAL repairs as well as their estimated prices:

-OPTIONAL Roof needs to be replaced in maybe 10 or so years, it has moss on it now but I can just clean that off for now, so I would say optional for the near term. 10-15K

-OPTIONAL: Two of the windows in the living room are failing and need to be replaced if I want people to be able to see through them (condensation stains on the inside of the panes). I estimate this to be 5k but optional. Two of the kitchen windows are slowly starting to do this as well but not much so far.

-OPTIONAL: Complete new garage door, it still works but is bowing: 2K

-House has no heating at all, tenant uses space heaters. The furnace is hooked up in a dangerous way to an exterior above ground water tank being used as an oil tank. No matter how much we tried to turn the furnace on, it wouldn't work, despite getting power: 10K to replace with electric on the high end.

-OPTIONAL: Insulation in attic is about non existent it's so thin: 2K to blow in insulation.

-Small amount of mold exists in MIL bathroom and laundry since no fan in bathroom and vent for dryer is not hooked up. House has asbestos/pop corn ceilings in the basement. Cost is negligible, maybe $500.

-OPTIONAL: all appliances in kitchen are stainless except for the fridge: 1K to get a stainless one, and I can sell the existing one to recoup some of that cost.

- The kitchen is a nice newish remodel, but the bathrooms are not entirely. There are small items like toilets that need to be replaced, shower door gaskets that need to be sealed, etc. $1K

-Basement carpet has some stains and is old office style carpet: 2K