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Updated over 2 years ago,
Need help analyzing a deal
This is my first post. I have one rental that my fiancé use to live in. I’m currently looking at a second.
House: 3b1b 1070sf house built in 1940
Listed price: $62500
It's currently rents for $875/month and needs several repairs. There are multiple soft spots in the floor, minor ceiling damage throughout, shower/tub kit likely needs replaced, areas of rotted wood on the outside, old floor furnace needs properly sealed, and the carpet needs ripped up and replaced. It hasn't been inspected, but will be before I buy it. Cash flow is the main goal. With some quick math I'm looking at around 17% cash on cash ROI. Any input on if this is a good deal or any red flags I should be looking for?
Any help is appreciated. Thanks