First Rental Opportunity (Advice)

[Ariel Echevarria]

Hello everyone. I'm new to this whole rental property thing and I wanted to get opinions on a property I'm looking at getting. Here is the background story.

My In Laws are looking to move to my town in Iowa. They currently live in PA and are getting their house ready to sell there. In the mean time they are looking at houses out here but do not want to get a new mortgage at their age ( late 50's early 60s). So, they would rather rent a place with the option to buy it if they wanted. They don't want anything huge or anything that needs a lot of work. So, I offered to be their boots on the ground. As I'm looking at properties I start to think....what if I buy a place they want and makes cash flow. If I could do that I would have to rent the place out for as long as it takes for her parents to get their house sold and move out here. That could be 6 months, 12 months or more. In the mean time I can be collecting cash flow, paying down the mortgage and if my in-laws decide to buy I can still sell it to them for a decent profit or just keep it as a cash flow.

So, here is the deal. The house is going for 66k, county appraises it at 76K but the ARV is about 83k once I spend about 5000 in upgrading the AC and finishing some minor touch ups. The house has all new electrical, new wood flooring with some bamboo flooring in a few rooms and other than that not much else needs to be done. I would need a washer and drier put in or I can just make the renter supply their own. It's a 2bd 2bath approx.1040sqft with an unfinished basement, attached one car garage and it's on a corner lot. In this area the average rent for a place like this is $700-900/month. I spoke with the owner yesterday since I know her step dad and she was renting it out for $750 and got a ton of applicants. I'm thinking I can get $850/month. I used the BRRRR calculator and I would basically be out of pocket by about $50/month for the first year but after the refinance I would cash flowing roughly $240. Cash on Cash was about 18% in the second year. If you want to see the whole report let me know and i'll share it with you.

So what do you all think? I have about 3k in Stocks I could sell to help pay for this place and I have about 10k in equity in my house I could use if I absolutely needed to. I would need a private lenders help to close on this house quickly since they have an offer in but are waiting on me to make an offer. I'm thinking of offering 60k.. They have a $1500 cash back allowance to use towards closing costs or a new AC. Does anyone have any private lenders that are great to work with?