Help with this deal!

[Jennifer Fernéz]

I need help analyzing this property.

Address:

2542 Glenn Terrace, Mount Penn, PA 19606

Asking Price: $209,000

Taxes: $5087 (they are really high in my county)

Renovations: $10K-$15K

Mortgage: Conventional

Credit Rating: 712 median

1. I have an interior design background and can make this property really cute, but is it worth it? I have to front a ton of capital.

2. I was thinking about getting the property, renovating it, and then cashing out 80% of the ARV to get some of the money back. Good idea or no?

3. What do you estimate the ARV? There is a 'comp' listed for $200,000, but it was sold as-is and needed great repair. I think if I make this house really cute, I could potentially get $240K ARV. But I don't know. What do you think?

4. What do you think you could rent this for? I have no idea. I think I could get at least $1700. Maybe $1800? $1900? $2000?

I don't want to spend all my capital, but I think I could potentially refinance and get some back. But then my cash flow won't be high, and when trying to get another property my DTI won't be great because 75% of the rent won't meet the mortgage. However, I like that there isn't a lot of work to do and I could still make the property really cute with not much risk.

Inventory is so low. Any help appreciated!