Originally posted by @David D'Errico:
I don't know your market but that seems high. what are the average home prices in your area. ok so on to the question at hand, assuming that is a fair market price. should you buy it? the first few things you need to know are:
what is the average rental rate for that size unit?
For this size, the average rental rate is $1800. Majority of the homes in this area are duplexes.
Assuming 20% down around $74,000, the mortgage would be $1,982/mo
The goal is to actually make a profit, but with the look of it the cost of rehabbing the entire place it may not be plausible.
what is your current rent rate?
Currently, it is $1,050 and the other side of the duplex is renting at $950
can you afford the mortgage?
I can not afford the mortgage
what work does the home need?
If it is going to be worth anything on the market...
Complete carpet replacement (dog stains), Electrical rewiring outside and inside the house (issues with outlets and circuit breaker), possibly adding central air, Kitchen and bath remodel,
