what do you think? PICS! first rental investment property

[Raymond Lopez]

OK , so I thought this would stir up a conversation. I am in the middle of analyzing this vacant property which is off market. It is in need of extensive rehab and I am in the processing of trying to get a GC out to give an estimate on. I can get the property for 60k, maybe even less. I already have someone lined up that wants to rent in the area. It is a small 2 bed 1 bath house(1020 sq ft) with a lot size 40x100.  A recent comp up the block just sold for 179k. Of course it was in great shape inside but with less sq ft and same lot size. The other houses in the area are all in the 350k range with average 3 bedrooms and 2 bath and bigger lot size. The area isnt bad at all with brand new houses just completed and a new one being built accross the street from this house. The outside of the house seems fine (siding)/foundation, so far it looks like a full gut plus plumbing and HVAC need to be replaced. Please let me know what you guys think - see pics, click below link

Rehab Rental PICS

[Joe Norman]

The first thing I suggest you do is figure out what the ARV will be. This is so that you don't over improve and so that you make sure you have equity to refinance (if thats part of your plan). Comparing your home to one up the block that sold for $179k, and then again to other homes selling for $350k, jumped out at me as a potential area for making a big mistake.

Nail down that ARV first and make sure that your acquisition + rehab costs won't put you too deep in a hole before you even get started.