Rookie crunching data for possible 1st buy

[Matt McLeod]

Hey all. My wife and I are considering making an offer on the following SFH:

3/1 with 1340sq.ft listed at $64,900. Built in 1954. Its an estate sale by the only child of the deceased homeowner. Vacant for over a year; on and off the market since June of 2013. Decent neighborhood. Lots of seniors, blue collar folks and some college kids.

$4500 in DIY renovations estimated: drywall repairs for small mold & water spots; painting interior; ripping up carpet & installing hardwood laminate; ripping up vinyl & installing tile; replacing oven/stove, refrigerator, & dishwasher. Can live with roof and HVAC but will probably need attention w/in 5yrs. We plan on living in it the first year and then renting it out.

20% down for 30yr fixed at 4.3%

Estimate $850/mo. in rent. Median rent in area estimated at $750/mo. Upper end is around $1000/mo.

Estimated cap rate: 7%

Estimated annual cash flow with 10% PM factored in: $3263

What do the BPers think? Thanks!

[Matt McLeod]

Ali, thanks for commenting.

Bob, I get that you do not support using cap rate to evaluate properties. I'd appreciate it if in the future you wouldn't comment on my posts. Your comments have been rude, condescending and ridiculously confrontational. Congratulations on your success. Please go away and enjoy it.

Thanks everyone else who took the time to comment. See y'all around.