4/1.5 Buy and Hold deal

[Brian Stieler]

Hey Everyone. I was hoping you could help me analyze a property I put an offer in for. It'll be my first one, and I'd prefer something smooth to learn from, rather that a headache (but that's what everyone's looking for right?).

1,300sqft Single Family Home in Michigan

4 Bedrooms - Three upstairs, one downstairs connected to the living room

1.5 Baths - Half bath upstairs, full bath downstairs

Asking price: $63,000. Offered $55,000

Estimated rent: ~$1100-$1200/m

Taxes: $875/y

30y Traditional loan. 20% down.

Needs:

- Complete interior paint & wallpaper removal

- New carpet throughout

- Tear off of roof in next 5 years (6 layers of shingles)

- New furnace in next 5 years

Pros:

- Large square footage

- Corner lot

- Aluminum siding looks good

- Decent sized kitchen with newer (but different colored) appliances

- Newer windows

- Upscale neighborhood

- Good school district

Cons:

- Next to the highway, quite noisey

- The bedroom/bathroom configuration is a bit odd

- No garage (think michigan winters)

What do you think? Good first investment?