Is this potential rental a deal? Scares about pulling triggee

[Elizabeth C.]

The seller has agreed to sell the house for $150,000, repairs are around 20k. ARV is 195,000. Rent in area are 1500-1600. Good school district.

I’m scared shitless. This would be my first investment property. Also, the taxes on the house have increased and will be $5900, which would really eat into my cash flow unless I can protest at next opportunity. Gotta love Texas.

I would use hard money then a refinance into a rental loan. I’d be basically putting 38k down And spending 10k in closing costs. Considering that, my cash flow would be $150- $250/mo, not considering vacancy or repairs in that number.

Good deal? Bad deal? Help! About to get cold feet.

[Joe Villeneuve]

Originally posted by @Larry Alexander:

I would have taken that deal a month ago. But today I've come around to thinking, based on large part from the investors here that say over and over again; "Cash flow should be closer to $500/month.

I would only use hard money if I couldn't get the cash any other way and the deal was insane! My understanding is if your cash strapped, look for owner financing, or house hack lease option. Hard money when you have so many properties and bank loans the bank will no longer loan to you.

Use HML only in two cases:

1 - Flips
2 - Can't get a Doctor Appointment fast enough, and need an enema really bad, ..really fast