Potential First Deal

[Chris Gonzalez]

I everyone! I am looking at purchasing my first rental property. A single family 2 bed 1 bath with an unfinished basement. This is an off market deal that the seller is still "working" on to make marketable. He had the same renters in there for probably 5 years. He told them he was selling the place and they moved out. The house is not trashed but could use a little work to be rent ready.  He wants $95000 but through conversation he said he would go $85,000 and he will have new carpet in it next week.

Here is my deal that I am going to offer him... I can do $75,000 cash buy it as is and close in 2 weeks. I have a $73,000 credit line and another $10,000 in savings. The credit union I use does not require 6 months for refinance. The conservative market value is $100,000.  Rents could be $700 as is or with a little work 8-850

Repairs needed. 

Flooring, paint, caulking and general clean up.

Additional repairs for increased equity and rents.

Add 2 bedrooms in the basement and cut in two egress windows. 

I will have to look at the feasibility of a 2nd bathroom.

I am looking for your input and any additional things I need to look at. This is my first investment property so the nerves are kicking my butt.

[Chris Gonzalez]

@Ryan Hill @Jaron Walling  Thanks for the input! I plan on doing most of the work myself. This house reminds me of my first home I bought in 2004. Well it atleast smells the same.🤢 I went and looked at it on my lunch break and a third bedroom is easily doable. The fourth would take a little more creativity. I would have to contract out the egress window install but other than that all else I can handle.The outside paint is good except the gables.  Hardwood floors exist under the carpet on the main level so the hopes are that I could refinish. The bathroom would probably need a little work. New toilet and vanity as the renters appear to not believe in regularly cleaning...

As for Rents the prices are all over the place. We live in an area where new housing doesn't exist. Rents range from $500 for a basement apartment to 1100 for a 4 bedroom house with a garage. Another option is long term corporate leases. The realtor I work with has calls all the time and they would prefer a furnished house for 2-3 year lease. If this is feasible I would prefer to go that route. I would be managing myself as the house is literally down the street from me. This is would make it easy to keep an eye on it as I drive past it everyday to work.