Hi BP World,

I'm looking at buying a 3bd 1.5b SFR in Montgomery AL. I have 2 exit strategies…1st is Buy and Hold, and 2nd is to Flip. How does these numbers look to you?

ARV $80-$90K
Repairs $35,000
Rental Comps $800-850

Asking $34,000 (just lowered by $4K)

I can only purchase the home with cash and will need to use Private Lending to cover the rehab. Location of property is in MId-Town Montgomery AL. The property is of classic southern design with tons of potential charm. Condition is fair and the entire house needs a renovation and no structural issues even though the house was built in 1910.

What concerns me is the neighborhood is on the borderline to a rough area but is experiencing a bit of a revival due it's proximity to the modernization effort of downtown Montgomery so I can see potentail. What really bugs me though is there's also another listing close by that is smaller but similar in specs a couple of blocks down the street and across from a low ranking high school where apparently kids trespass frequently. It's been on the market for almost 1 year….

Given those details I still think I'd be able to get renters will to pay $800 which is what rentometer as suggested is a average price for the area. What offer would you make? I think the similar listing is justification to go for a 50%-60% of asking?

All comments, critiques, and suggestions are welcome!

Thanks!

-Joe