[Calc Review] Help me analyze this deal

[Jana Larko]

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*This link comes directly from our calculators, based on information input by the member who posted.

Home is located north of I-94 in the Moross-Morang/Harper Woods neighborhood, next to Grosse Pointe. We met the current tenant and toured the home. Nice close-knit block; the type where folks will move in and stay for several years and watch out for one another. Short drive to Ascension St. John's Hospital and planned economic development projects on east side of Detroit. 

Home needs work.

New hot water tank. Tenant has been living months without hot water; current slumlord refuses to replace. 

Roof needs full replacement. Tenant states that water leaks into living room where the sloped part of the roof meets the flat part of the roof. Leaking began only over the past years so we anticipate roof replacement should fix this issue. 

After the Detroit pump failure in the summer of 2021; the current owner did not assist the elderly tenant in handling water in the basement. Her items remain down there, growing mold. Most of the basement is brick, there is some wood paneling that would need to be torn down. We anticipate need for basement debris/junk removal, mold removal, and sanitation.

Cosmetic improvements...tear up carpet, install vinyl flooring in entire house. Update bathroom vanity.

We are budgeting $30k for above work; and, still anticipate $500/month or so in cash flow. \

Any and all thoughts welcome.

Specific Questions: 

1. Is my $30k estimate reasonable? 

2. Home is listed for 75k; we are hoping we can get the home for at least $62,500, if not less given the need for a new roof, and mold issue.

3. We are hoping for recommendations to reliable and competent contractors for the roof, mold sanitation work, etc.