[Calc Review] Help me analyze another Arlington, TX deal

[Anthony Heatley]

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*This link comes directly from our calculators, based on information input by the member who posted.

Good evening BP,

If I were to buy this property, I'd use a 203K loan. I checked rentometer and saw that I could comfortably get $1,000 per door here. All things considered, I wouldn't call it a great deal. I'd get a $170 discount on my rent though. It's in a good location. Near markets and restaurants. It's also 3 miles from UTA.

I'm hoping you can give me some feedback and tell me if I fudged on the numbers somewhere. The owner is asking $305,000 for the property so I doubt he'd accept $210,000 due to its good condition. The only place I could imagine adding value is the landscaping. Maybe update the cabinets and paint, but I don't know how much value that would really add.

I'd appreciate any feedback or suggestions. Thanks!

[Bart H.]

Originally posted by @Anthony Heatley:

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*This link comes directly from our calculators, based on information input by the member who posted.

Good evening BP,

If I were to buy this property, I'd use a 203K loan. I checked rentometer and saw that I could comfortably get $1,000 per door here. All things considered, I wouldn't call it a great deal. I'd get a $170 discount on my rent though. It's in a good location. Near markets and restaurants. It's also 3 miles from UTA.

I'm hoping you can give me some feedback and tell me if I fudged on the numbers somewhere. The owner is asking $305,000 for the property so I doubt he'd accept $210,000 due to its good condition. The only place I could imagine adding value is the landscaping. Maybe update the cabinets and paint, but I don't know how much value that would really add.

I'd appreciate any feedback or suggestions. Thanks!

As a house hack, its fine.  I agree with others that getting in for $210K might be optimistic.

But the deal as presented would be ok.  

Here is the thing, don't worry about if there is something "off-Market" as a first time buyer.  Almost all of the off market deals that are out there would require, either an all cash purchase, short closing date, and/or the house would need  substantial rehab. 

I suspect an MLS deal might be your best scenario, it will allow you get to get a move in ready property that you can finance.

Others may have a slightly different take, but imo for a house hack, (and I have done several of them).  Find a property that you are willing to live in.  A bonus if it is in an appreciating market/neighborhood. 

I believe with a house hack that you look at your budget to buy a house.  And what you would pay in rent (say 1,500).  If your house hack is less than what you would otherwise spend, then any rent is positive.  Plus you get tax write offs, capital appreciation, mortgage paydown.

The classic return doesn't have to be that great, you are learning about being a landlord, and learning the process.  Once you get the blocking and tackling down, its pretty easy to scale up and look for off market properties.