Accepted offer on 3rd House...here's the deal

[Kel S]

We just got word yesterday that our offer was accepted and we have the purchase contract back. Here's what happened.

I've had my eye on this cute little house that had been on the market for quite some time. It was listed at $59,900 to start with. Then dropped to $49,900 and recently dropped to $39,900. This over the course of about a year. This isn't a bank owned but rather an estate.

So the minute I saw they reduced the price again I called hubby and asked him to drive by on his way home. He did and ended up talking to the gentleman there for an hour and a half. He walked all through the house and chatted some more with the guy. It's he and his sister that are trying to sell the house. It belonged to their mother and has been in the family for years.

My husband offered him 29k and he said he'd sell it to us for that. That he would really like to move on and get on with his life and not have to worry any more about trying to sell the house.

About the house:

2 bed/1bath
Built in 1912
817 sq ft
Basement
large 2 1/2 car garage (detached)
I don't have data for what it last sold for because the county system doesn't go back far enough in years to show what it last sold for. The tax value says $78k. But doing comps in that area I'm seeing homes sold in the $60-99k range.
Rent would be $650-750 range depending on if we convert it to a 3bed or not.
We are going to actually finance this one through hubby's credit union. I was shocked to be honest that they would since it's a rental but she said no problem. The only thing he can't do is finance it through his LLC. It has to be through his name only. Weird...not sure why that is. But whatever...payments will probably be about $110/mo for the loan I'm guessing.

What do you think? Did we do ok on this deal?

Minimal work to get it rent ready. I'd say clean the carpets and paint. The roof on the house and garage are virtually brand new. The driveway is beautiful (can you call a driveway beautiful?) with new asphalt or blacktop...whatever that stuff is called. The porch looks new as well. The neighborhood is really nice and you can tell that all the surrounding homes are very well taken care of. Also in a awesome school district.

A question I have for you all is that this place has the 2 bedrooms like I said. One is 10 x 12 and the other one is 15 x 9. At one point the guy said it used to be a 3 bedroom house. That 15 x 9 room was actually 2 bedrooms but the wall was taken out. From a rental point of view I was thinking perhaps we should revert it back to a 3 bedroom even if the rooms are very small. I think people with children (especially the opposite sex) would want a 3 bed even if the rooms were smaller. What do you all think?