Dallas Newbie Needing Advice on Potential Deal!

[Kelton Johnson]

Hi guys, 

I'm new to real estate investing (only 24), but I've been reading non-stop for the last year and listening to the biggerpockets podcasts religiously. I was originally looking to buy a Duplex in Dallas and house hack, but I've found the options for duplex's to be slim around these parts. So I've started to look into cashflowing SFH's that I could buy and move into with my current two roommates for a year, then move and rent out fully. I recently stumbled upon a 3 bed 2 bath HUD foreclosure that had very interesting numbers.

Asking Price: $93000 (Mortgage would be ~$350 @ 3.88 interest)

Rent/Mo: $1350 ($1215 w/10% vacancy) or $900 ($810 w/10% vacancy) when I'm living there and renting to my roommates 

Taxes: ~$190

Insurance: ~$100  

Avg. Capex/ Year: $183 (Should cover regular maintenance and large capex costs over time)

This house definitely needs some repairs, but I think I can use this as an opportunity to employ the BRRR strategy! Comps in that area are going for between $130-$140K. Unfortunately, I have little to no knowledge on the cost to renovate a place like this. I can tell you the kitchen and the bathrooms need remodeling though (simply old and outdated). However, if I can do these renovations for a reasonable price and possibly even use a 203k loan for them, I think I could refinance and make a decent chunk of change before I move in and begin renting to my roommates.

I know the renovation costs are a big piece to this puzzle, so if anyone has any advice on how I can get good ballpark figures I would definitely appreciate it.  Other than that, please let me know your thoughts on the deal, good, bad or indifferent. 

Thanks so much!