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Updated over 10 years ago on . Most recent reply
![Dawn Anastasi's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/129189/1621418242-avatar-dawn_wi.jpg?twic=v1/output=image/cover=128x128&v=2)
Am I out of my mind or is this a deal?
Okay, there is this property that I think is a worthwhile investment but I cannot take it on myself. So I recommended it to another individual and surprisingly, this property is not being snapped up. So I wanted to get others' opinions on it, because maybe I don't know what I'm talking about? (I could post this in the "Marketplace" if I was advertising it, but I just want opinions on the deal itself.)
- 3 bedroom, 1 bathroom single-family
- List price $49,900
- 1 car attached garage
- Currently rented at $900/month
- Tenants have been there about 6 years, not on Section 8
- Tenants love the house and want to stay; pay utilities and lawn care.
- House was originally from 1950 but was moved to its present location about 7 years ago. All new foundation, all new plumbing, all new electrical, new furnace, new water heater, new siding, new roof, new garage door, new drywall (house was torn down to the studs and rebuilt when moved). So it's pretty much like a 7 year old house.
- Located in a little sub-division area; very quiet and little traffic. Neighbors seem nice.
- New repairs needed - garage door spring broke or off track; needs to be fixed. Some vinyl siding pieces need to be replaced; few shingles need to be fixed. All in all maybe $1000 in repairs.
Suggested to offer $45,000 -- potentially less as it's been on the market for a while. (Reason: tenants have made it hard to show because they are very afraid of someone buying it and kicking them out. When I visited and said I was looking to keep it as a rental at the same rent, the tenant was very happy and told me, "please buy this house".)
Monthly expenses/reserves: $591 --> taxes, insurance, vacancy, maintenance, property management. (This assumes cash purchase.)
Net cash flow $309/month
So am I missing something?
Most Popular Reply
![Dawn Anastasi's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/129189/1621418242-avatar-dawn_wi.jpg?twic=v1/output=image/cover=128x128&v=2)
Originally posted by Aaron Montague:
Where do you get $4,000 in closing costs? Whenever I've closed on a cash deal the closing costs were minimal (few hundred dollars at most).