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Updated over 9 years ago, 05/17/2015
Potential First Investment - In Need of Help
Hey guys,
I found a semi detached property going for 90,000. The expected rent is 950 for a 2 bedroom apartment and from what I see, 1200 for a 2 bedroom semi. Vacancy sits around 3% in the city.
The exterior looks like it needs to be worked on and I'm not sure what the interior looks like (no pictures). Given the mortgage rates here in Canada (2.54%), 5% vacancy, 10% PM, 5% maintenance, property tax and insurance and 5% down, I'm seeing CF at 351 month.
My challenge right now is:
1. A 1.5hr drive from where I am
2. No interior pictures
3. The exterior needs work to get the 1200/mth rent
In regards to those challenges:
1 / 2. I have a friend who is a REA in the region and has a few properties himself, I was thinking of having him take pictures of the interior and providing me with his thoughts about the place before I make the trip down there to see it myself. Do you think this is a good idea?
3. The exterior looks like http://cdn.realtor.ca/listing/reb14/highres/2/h315.... What do you think would need to be done to give it the curb appeal.
Note: the other half of the semi detached is also on the market for the same amount and I believe could bring in the same rent. The seller agent is also the same. Is there a way to consolidate the loan and the closing costs even though they are two different properties? Do you think I can use that as leverage for negotiating?
Any / all advice will be greatly appreciated. Thanks in advance!