Help with Analyzing Property

[Sam Evans]

I recently found a potential rental home in southeast Texas. 2 bed, 1 bath and 1064 sqft. Asking price is 65k. Now, I have zero experience other than reading a lot of articles over the past few months and I'm in need of some input. I anticipate putting around 10k in renovations. My questions are:

(1)Do you think this is a viable unit in terms of cash flow? Rent would need to be at least 750 to meet the 1% rule (would hope for more), but I'm concerned that will be too expensive for the size of the house.

(2) Considering flood insurance, taxes, home insurance, etc., will all these extra fees eat away any returns? I'm unsure of the actual values currently.

[Alex Saleeby]

Hi there Sam Evans Welcome to SETX investing. Look for some BP instructional videos by Brandon Turner. He's got some good ones on rental property analysis and buying older properties.
I'm in Jefferson county and absolutely get flood insurance for every property. Taxes and insurance tend to be pricy so I find that I need to be closer to 1.5% for any decent cash flow. The higher the better of course. Without looking at the deal specifics, I would tend to agree that you may be paying too much for the property. Feel free to PM me if need additional help or contacts.
There are a couple of REIA groups that meet monthly in Bmt. I encourage you to attend one or both.