Is this a deal???

[Josh Bloomquist]

I'm a new investor, and I found a property in a C class neighborhood (a lot of college kids also) that is in downtown Kalamazoo, MI that I'm hoping some of you BP'ers will give me some feedback on whether it's a deal you would enter into. It's a 4Bd, 1.5Ba 1500sqft SFR. The asking price is $22k cash. After around $8k for new flooring, paint, appliances, interior doors, and cleanup, I would estimate the ARV (Remember I'm new to this and I'm really not familiar with the neighborhood) to be around $65k. I based that on similar properties for sale in the area (a couple of which are listed "as is"). I would also estimate that it could rent for $600/month. A couple things to note is that there is little to no parking available except on the street and I'm hesitant about the tenant pool for this type of property.

Based on this, would you purchase this property?  Why or why not?  If further info is needed, please let me know.  Thanks in advance!

[Jonathan Johnson]

Asking Price:   $22,000 + $8,000 
ARV: $65,000

Gross Income: $7,200/yr

The 2% rule would be in favor since 2% of the $30,000 is $600/month. I would call up a real estate agent and just ask if $600/mo is doable for the area, they would be able to give you a quick answer.

I would also post some pictures for BPer's to help figure the cost of repairs since that's usually what bites people in the butt.

Nice find, where'd you get it?