Would you buy this rental property? quick info inside

[John Ratigan]

Hi,

Had a tenant last year for: 1,250/mo

The place is a dump, I would clean it up and make it nicer for just the price of the materials as I am a contractor myself. 

Holding Costs 1100/mo

620 interest payment to seller 

238 taxes

50 rental insurance

80 lawn (only 6 mo a year)

115 maintenance (1% of total cost per year rough estimate)

After Repair Rent: Minimum will be 1,500/mo.

good school district. 

Does taking control of this house and making at least $400/mo make sense? 

Is a headache just to make 400/mo or do you view it as a good property to add to a portfolio or do you say the numbers aren't any good, pass on the deal? thx

[John Ratigan]

paul, it's a top school district in the country, every nice area has one not so nice area...but it's safe! i don't think the house will appreciate but the land will.