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Updated about 7 years ago,
Does this deal make sense?
The owner of the house across from my in-laws passed and his sons are going to put it on the market.We contacted the realtor and got a 10 option before it hit the MLS. From what we understand it just needs some paint before we could rent it out. Obviously we have to get inside and see what the true condition is. We plan to use private money to acquire and refinance after 6 months. The house is Highlands TX in a good neighborhood. I used the BRRRR calculator and can provide more info if needed.
If everything checks out and my numbers are correct is this a good deal?
Purchase price $100,000
Repairs $5,000
AVR $135,000
Monthly cash flow $103
ROI 12.74%
2% rule 1.22