Hi all,
Thanks in advance for the advice.
Quick backstory: I just moved to KY, will be here for three years, and am trying to acquire some distressed properties as a first time investor to turn into rentals before leaving. I am currently in an apartment, and looking for a house-hack opportunity initally, but came across a single family FSBO that might be worth picking up as an investment (not my residence). Here's the info, I could use your feedback...
-2 bed/2bath nicer house in a rough part of town. But on the edge of a big redevolpment iniative.
THE CONS:
-It is the nicer house on the street, which is the opposite of what we're supposed to look for.
-The price is fairly consistent with the market, not a superb deal considering the neighborhood and street.
-Not much room for forced appreciation.
THE PROS:
-The owner is motivated and there may be some room to negotiate.
-even at the current price, with conservative rent numbers, the cash on cash ROI is about 7%. Bringing in about $250/month. Which is pretty good for me.
-easily passes the 50% rule.
THE BUY?
-I'm thinking of doing a cash purchase. What would you do?
