Would you buy this house??? What would your exit be?

[Tyler Smiarowski]

Have a guy who wants to sell me a rental he owns..here are the details:

4 br

1 bath

1100 sq ft

2 car garage

Overall condition of property is pretty good

Only thing I would or might do is update kitchen and bathroom..probably spend 4-5k. Their are 2 things I don't like about the house..first the garage is in the back and about 30 yards from the house. This would turn off buyers I believe..and the second thing I don't like is there really is not a dining area in the home. The kitchen and living room are blended together so there is no room for a family to sit down and have dinner. 

The seller wants 75k and I believe the true value of the property currently is 90-95k and if the kitchen and bath are updated probably  105k to 110k. 

If I were to buy the house my two options would be to flip it for  a quick profit or rent it out. 

If I were to flip the home I just feel a bit uncomfortable since the margins are a bit thin. 

If I rent it out my cash flow would be about $115 per month (25 year, 4.75% 100% financed, 20% for vacancy and RM) which is a bit low but the equity in the house I think would make up for the shortfall.  

What would you do and what are your opinions on doing deals that are a bit thin?

[Fred Heller]

In my opinion, the answer to questions like this always lies in how the property compares to others in the area.

A detached garage fronting an alley is not uncommon across the midwest, especially in larger cities. If the other homes in the area have a similar setup, then it probably won't be a problem. If the detached garage is unique to that property, then it could be a problem.

The deal breaker for me would be the 1 bathroom. I just can't see too many people interested in a house with 1 bathroom if it has that many bedrooms.