Would you jump on this deal?

[Edith TenBroek]

Hello!  I'm still in the learning phase.  We recently moved to Atchison KS and I've been looking at KC a lot.  I won't have access to money until after the first of the year, so this deal will be long gone, but I'm just wondering if it looks like a good bet for a flip or a buy and hold?    Maybe someone here can benefit?

https://www.realtor.com/realestateandhomes-detail/6105-E-148th-Ter_Grandview_MO_64030_M82993-40098

[Jim Adrian]

It really depends on rehab cost.  If we assume there is 1700 sf of space being renovated to cover unfinished spaces like garage and storage rooms.  At $40 per sf = $68k or using $50 per sf = $85k for reno cost.  Using Zillow there is 1400 sf of finished space and rent at $1100.  As we know Zillow can / is wrong at times.  As a by and hold its looser or break even at best that if you can $1200 (aggressive?) for rent.  If you find a way to cut $25k out of the rehab then its becomes positive at $100 a month.  This assumes you buy it at $40k.  Zillow list this at $99k home value and $850 rent but a $1000 of the area.  Taking this a face value and know nothing of the area.