Thoughts 2 Br sfr Rental

[Doug B.]

Have one house under contract and the bank dealing with has offered a 2 br 1 bath home 800 sq ft. with firm asking price of $27,900. RENO will be $9,500.

House in 2010 had new main service ran, A/C, hot water. RENO will be new inside electric, cabinets, appl., flooring and cosmetic the rest. Roof is decent.

The house will rent for $635. The ARV will be $38,000. While predicting value down the road is hard a safe guess 4 years value will be $45,000.

Management is in house, taxes / insurance $165 a month. Cash deal and would 4 years cash flow after expense of $19 k and equity of $7 k be a good deal. Have thoughts of exiting after 4 years or should just hold longer. Residential have been trying to start off with equity at begging and never figured or any experience starting off at break even as to equity.