3bd, 1ba, pretty nice neighborhood, $22,100 --- Should I buy? (pics)

[Brett O]

I'm trying to decide weather or not this house will be a good investment for me. It can be purchased for $22,100 And it will rent for $600 per month. I estimate it needs $5,000 worth of fix up to make it rentable. Taxes are $1,600. per year.

So if my fix up estimate is right I'll have $27,100 in it, getting $600 per month rent. Good deal? It is an HUD property if that makes any difference.

[Eddie Ziv]

Always ask yourself what the house worth to you!. Don't try to "outsmart" the market. You will be beat every time. The evaluation of a property for a flipper or wholesaler is different from a buy and holder buyer. For the flipper/wholesaler it is a simple calculation of profit margin. They cannot buy a property that would be too high to purchase if they cannot make a profit. For the buy and hold buyer, it is a different story. It is about cash flow and long term investment. For me, as a B&H buyer, I rather pay a little more for a good solid property that will guaranty good cash flow, than risking getting that property for the attempt to save a couple of grands.