So, my wife and I made our first offer on a potential rental property and the seller has accepted. Being that this is my first property, I figured I'd post up the details and see if I could get some feedback. At this point, the purchase is contingent upon a financing, acceptable inspection, and the city allowing us to excavate beside the driveway to create at least one addition parking spot as one of the main down falls is that it is a shared garage (with dividing wall) and driveway.

That said, we have a purchase price of $38,500 locked in so long as everything goes as planned. The prior owners purchased it as a rental property a couple years ago for $60,000 and actually had it successfully rented out, but they live about 2 hours away and were unable to manage it successfully resulting in it being trashed. One of my concerns is that the prior owners are willing to take such a huge loss on the property considering they want it to be an investment, but the broker assured us that it's been sitting on the market for quite awhile, they're unable to properly manage it from so far away, and the real estate market in the area is slow - so they've been aggressively priced to sell.

Anyways, the house just next door to the east (the yellow one) is a very comparable property detail wise, but not quite as nice and it currently is leased out for $700 per month. Because it's a shared driveway, one of my contingencies is for the city to allow me to add at least one new parking spot - roughly a $600 is what I've been estimated plus any retaining wall. One of the major benefits is it as on the main drag of town, so basically anyone and everyone in town is going to drive by this place.

Here's some details on the property. First some tax information.

http://beacon.schneidercorp.com/Application.aspx?AppID=325&LayerID=3398&PageTypeID=4&PageID=2264&Q=1023740063&KeyValue=0835102033

And now a map of the property.

https://www.google.com/maps/@41.69918,-93.037245,3a,37.5y,1.89h,89.42t/data=!3m4!1e1!3m2!1sebRxq-9wUPR_rx0i-2cw0w!2e0!6m1!1e1

So, what do you all think. I still have some contingencies to back out, so if anyone thinks it looks like an absolute bad investment let me know.

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