My First Deal

[Chad Day]

I really want to get in to renting out properties. I live in a small city(35k) in Wisconsin. I've found a few single family properties I'd like to buy and rent out. Here is the best one I've found.

It's a 3 bed 1 bath 2 car detached in a decent neighborhood. The person that use to own it died(in a nursing home). The property is assessed at 70k and they want 35k. The property needs paint and carpet and hopefully no major repairs.

I made a little spreadsheet from the financial analysis article and another on calculating rentals on a napkin. So here are the numbers:

http://i.imgur.com/oGTHRq3.png

I believe my numbers are conservative. I put 20% down to avoid PMI, then calculate 15K which should cover paint, carpet, and some minor repairs.

This gives me about 1.45% of rent to purchase price and repairs. I like this property compared to others do to its low cost. If this turns out to be something I do not like, I feel I could unload it easily.

I've found a few similar to this in my area although most are HUD cases. One is a VA owned property.

Thanks!