Can I get opinions on analyzing a deal in a small town?

[Marco Lopez]

Hello BP,

Can I get some help analyzing this deal?

The home is located between San Antonio and Laredo Texas. The home is not far from IH-35 a major highway in Texas. City population 4,000. The property has two homes on one lot. The lot size is 0.1.

Home 1:

Year built: unknown

Stories: 1

Beds: 3

Bath: 2

Sqft: 1,182

Repair estimate: Roof, exterior paint and misc. repairs, interior paint, flooring, landscaping.

Home 2:

Year built: unknown

Stories: 1

Beds: 1

Bath: 1

Sqft: 676

Repair estimate: Roof (including some rafters), flooring, paint, 3 windows.

Comps:

Comp 1: 3 bed, 1 bath, 1,340 sqft, built unk, Sold price $30,000 cash, Home needs repairs offered conventional or cash

Comp 2: 2 bed, 1 bath, 870 sqft, built unk, Sold price $44,000 seller finance, home had tenants.

I have current value at $65,500 based on average sold price/sqft of sold properties.

Additionally: subject property has separate electric meters. However, they share water and sewer.

Deal structure: Owner finance. Price $45,000, down payment $3,000. Interest rate 3%. Term 20 years. P & I = 243.58. PITI = 460.26

Exit Strategy:

E.S. 1: Spend approximately 20K – 25K in repairs and rent both units separately. The 3/2 for $750 and the 1/1 for $500. Tenants pay electricity and I would be responsible for water.

E.S. 2: I find a seller finance or rent to own buyer. I sell the properties as is. Obtain a deposit from buyer of apx. $7,500 and payments around $800 monthly.

Finally, I have minimal data on home sales. Therefore, obtaining ARV would be heavily subjective. So, I used comps from similar properties that recently sold that were not rehabbed. I tried to be as concise as possible to keep fluff low. Therefore, if I missed an item of importance. Please let me know. Thank you!