Third is a charm - Please help validate the rehab cost

[Rene M.]

Hello all,

I found another prospect for my first property…

77K for a Brick end-townhome without HOA from 1986. 1200 SQFT, Fenced in yard, Little balcony, 2 bed, 1.5 bath. With a very good location right of the interstate and it's a 1 min walk to 9 different hotels.

My idea is to fix and clean the house up and then put it on AirBnB. Pessimistic business case income should be 1500$ a month - after all Airbnb+Cleaning expenses. Current market rent would be about 900.

I just had the walkthrough and found quite some things I did not like…

1k-There is downstairs laminate floor damage (due to condensation from the airhandler according to the seller).

5k-The airhandler is very old - min 15 years and so is the AC unit.

???k-There were two visible water issues under the bathroom (1 under the sink one under the toilet) - The plumbing looks like poly (below is a picture of the Waterheater - does anyone have an idea if that is Poly and if So how much it would be to replace it in a house like that)

5k-original roof but looks fine no visible roof leaks (very simple roof structure and small surface - don't know how realistic my estimate is?)

1k-Giant tree in the backyard with branches touching the roof (tree removal after approval by city)

???K-Wiring is original and I'm sure that would not fulfill current building codes - Do I have to do something as long as the electricity is working?

2-3k-Carpet on the stairs and upstairs needs to be replaced by vinyl plank

So 20K for the rehab?

There is a lot to do, but I feel the location is strong…

What do y'all think?

Any experts who can help me validate the rehab cost?

Thanks!

Rene