First Timer Question

[Colin McCarthy]

Hi all, 

I'm looking for a little advice.  I've been browsing for an investor deal for the past few days having read several success stories here on BP.  I came across a wholesaler/rehabber in Texas who has made the following pitch; 

Description: Under market value fixer upper 4 beds 2 bath, 1078 sqft, lot size: .13 acres, yearly taxes: $1,200.00, estimated insurance: $750.00, estimated repairs: 30K; central hvac, flooring, update kitchen/bath, roof, interior/exterior finish.

Price: $49,000 Cash
ARV: 109-115K
Exit Strategy:

• Owner Finance with 30K repairs: 5k down, $1,095.00 monthly P/I, 30 year amortization, 10% interest, Price: 109k
• Rent with 30K in repairs: $1,095.00 with section 8, no need to chase the monthly payment, Housing Authority pays direct deposit to your account.

He is recommending a cash purchase but also has a lender who does rehab loans.  I have very good credit and have the cash but I don't want to sink it all in on one out-of-state deal.  I'd apprecaite any insight from experienced BP members on this type of deal.

Many thanks,

Colin Mc.

[Anthony Angotti]

I'm assuming this is single family. Also, what is your goal with this property? Rent it out or flip it?

Has it been rented recently? If so I would ask for the actual data. Don't stick to pro forma data for your analysis. If it is currently rented you can ask for the schedule E.