Potential deal in south al

[Mark Powell]

I have what I think to be a good deal, but as its my first I would like to run it through BP first to get torn apart and ripped to shreds so I can either trash it or make it better. Take a look. No holds barred!

3 bedrooms, 2 bath, kitchen, living room, dining room, laundry room, 1680 sq/f on a half acre fenced lot with a 1200 sq/f shed on the side.
New floors in living room and bedrooms.
New septic line from tank to house.
Fresh paint on walls.
Seller had house for sale at 139k as per appraiser
Seller is ready to sell to get closer to school and work. Must sell house to finance second home.
Seller located second home. Needs to sell ASAP for the down payment.
Seller asks for 90k for home.

Appraised value- $139,000.00
Proposed offer to seller- $83,400.00
Loan to Value- 60%
6 -12 months interest only @
10% monthly = 695/mo for 12 months = $8,430.00
$91,740.00
12% total accrued + principle = $10,008.00
$93,408.00
Rent per room @ 480/mo = 1440/mo-695 = 745
Rent per room @ 150/wk = 1800/mo-695 = 1105

those high rents and weekly rates will work for this particular deal because...

Won’t take loan until 3 renters make commitment.
Rental is very close to new steel mill.
Workers are paying 199/wk at Value Place 45 minutes away.
Seller gets daily offers from prospective renters.
Workers work 10-12 hour days 6-7 days a week. Making 14-27/hr.

Thats three slides from a power point pres i made to pitch my deals to new investors.
Please, be honest and let me know what you think.