First property deal analysis

[Alexandra Sales]

Hi All! Hoping to get your insight and advice on an old property (1930). I'm new to REI and so I'll take all the advice I can get.

Purchase: $115,500 including closing costs

ARV comps recently sold (2020): $170-$190K
Rent:$1100-1200

Cosmetic Rehab: $18,000

Repairs: $12-15K 

Because this is sold as-is and is an old property, there are repairs that need to be done such as foundation bracing, sewer clean out (inspector couldn’t get passed tree root build up), load bearing beam replacements in basement, electric panel replacement, gutter/fascia replacement, And a new water heater. 

The floors and paint need to be done but other cosmetic stuff can also wait. It is still rentable without upgrading all cabinets/backsplash etc. The Rehab price above includes full upgrade. 

I am really new with real estate and home repairs in general, so Figuring out if this is a good deal to step into is what I’m concerned about. Mostly the repairs not cosmetic rehab part. Any advice or insight would help! Thanks I appreciate it!! 

[Alexandra Sales]

@Jonathan Greene Yes, we had a sewer scope and the inspector said he did not see a crack in the piping BUT he was unable to finish the last 20-30 feet because of the tree root debris. Unfortunately they are selling as-is and we cannot get that cleaned to check before purchasing. It'll be a risk we have to take. 

@Aaron K. Yeah we are thinking of how to go about this because have a certain budget for rehab (especially since it's our first one) but after the inspection there were a lot of repairs that need to be completed.