All Forum Posts by: Josh Blades

Thanks Curt.  The adjacent block is the heartbeat of the neighborhood.  It has some well-kept homes, and almost everyone on the street has a neighborhood association sign.  However, this block has a few vacant properties and a few decent rentals. At this point, I'm not opposed to holding it indefinitely, but obviously, that could change in the future.  So, the resell issue is somewhat concerning. 

*crosspost from Starting Out Forum

This is my first post, and--you guessed it--it's about my first deal. First of all-- props to all the contributors on this site for the wealth of advice you have given me without me even having to ask. There is a ton of great stuff here.

Ok- now, down to business. I'm looking at a property in a class c neighborhood. It's in generally good condition. Relatively new plumbing and HVAC. Interior is good shape. Will need a roof soon and some exterior paint at some point.

Asking price is around $55k. One unit is rented for $550 a month to a 100% section 8 tenant--older single lady who seems to take great care of the property. The other side will be vacant in January. Previous tenant was paying $550 a month. Two potential renters are looking at the property this week.

Please tell me if I am way off here, but, if I can get them off the asking price to help offset the roof cost, the cash flow should be decent on the property and one renter will cover the note on 15-yr loan. Cap rate of around 16%. My business partner will manage the property.

However, the property is by far the nicest on the block, and I worry that it will be difficult to unload the property and make my money back when it comes time to sell.

Any advice?

This is my first post, and--you guessed it--it's about my first deal.  First of all-- props to all the contributors on this site for the wealth of advice you have given me without me even having to ask. There is a ton of great stuff here.

Ok- now, down to business.   I'm looking at a property in a class c neighborhood.  It's in generally good condition.  Relatively new plumbing and HVAC. Interior is good shape.  Will need a roof soon and some exterior paint at some point.  

Asking price is around $55k.  One unit is rented for $550 a month to a 100% section 8 tenant--older single lady who seems to take great care of the property. The other side will be vacant in January. Previous tenant was paying $550 a month.  Two potential renters are looking at the property this week.  

Please tell me if I am way off here, but, if I can get them off the asking price to help offset the roof cost, the cash flow should be decent on the property and one renter will cover the note on 15-yr loan.  Cap rate of around 16%.  My business partner will manage the property.

 However, the property is by far the nicest on the block, and I worry that it will be difficult to unload the property and make my money back when it comes time to sell.

Any advice?