Help me analyze my first this deal

[Antonio Garcia]

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[Larry Turowski]

@Antonio Garcia This doesn't look like a great first deal.  The first thing that jumps out at me is the $50K rehab.  That is a LOT of rehab and will likely take a LONG time.  Keep in mind that there is an opportunity cost of $1K/mo in lost rent for every month it is in rehab and not performing.  This could easily stretch to 6 months for a newbie.  That is a $6K opportunity cost over a rent-ready house.  Add in the financing costs for the rehab (and possible seasoning period).  I assume you haven't got the cash on hand.

You'd be better off paying $81K (I'm sure you can find something at a 10% discount) for a $90K rent-ready house, which isn't to say that would be a good deal either.