Hey guys! I want to get my first rental property this year (as soon as I can really), and I want to know what you guys think about this option. Long story short, my grandma lives in a small town in Texas, and is selling her house this summer. She mentioned some other investors are interested in her home. I asked her to give me first choice to buy the property. I think it would be good to keep the house in the family considering all the memories I have there. Also I live 4-5 hours away, and will most likely get a property manager. This is my first time to run through a property using the BP calculators, so here are the numbers and tell me what you think.
3 Bed/ 1 Full 1 Half Bath/ 1,432 sq ft/ Built in 1958/ 2 Car Garage/ 1 story
Current Value (Realtor.com)= $125,000 (purchase price for example)
ARV (estimating)= $140-$160K .. current median listing price is $159,000
Repair= $5-10K Cosmetic
20% Down- $25,000... Loan of $100,000... 3.9% interest (guess)
Monthly P&I= $471.67
Monthly Income= $1,500/mo
Monthly Expenses= $1,341.25
Cashflow= $158.75
NOI= $7,565
COC ROI= 5.15%
Estimated Cash Needed =$37,000 ($25k DP, $10K Repairs, $2K Closing costs)
I have almost $20,000 saved, and $15,000 Line of Credit available.
My parents live 10 minutes away from the house, so they could drive by to check on the property, help fix minor repairs if needed.
**Also, I currently live in San Antonio, TX. I want to invest here as well, but I don't want to miss this opportunity if it may be a good one for me to start with, and that I get first choice. But, would you invest in SA first instead because obviously the real estate market is better?
Is this a reasonable first deal? If so, what would you recommend the best way to go about financing? Thanks you for your advice!
