Looks like a pretty solid deal if you like the location.

They are both college students who also work.Person A is 20 years old, has a FICO score in low 600s, no rental history, has been at retail job for six months.Person B: I haven't run his application yet but he seems more solid than Person A (he has 2 years of rental history, more work history). 21 y.o.Combined, they make $100 more than my minimum income requirement for this rental.

The only way to really take risk on these buildings is to assume you have a solid set of bones or go by outside condition and figure everything inside needs to be replaced. running numbers on anything but this would be pure un educated gambling.

You need a solid plan that everyone sticks to and make sure you know your partners well if they are going to be involved in the deal and not just silent investors.

Go in with solid renovation cost numbers, ARV comps, etc.

I never thought of FSBO, but that could be a solid idea.

As for the home warranty, it does not cover many of the items such as water intrusion, foundation movement, rotted wood inside stucco.

He's currently repairing a shower for us that the previous contractor botched up and doing some minor repairs to the wood fence.

hopefully its generating some solid cash flow for you.Thanks

I have never heard of that but if it is fairly common in your neck of the woods Im sure that definitely made you more comfortable.My concern would be that something could possibly happen to the home during renovation (fire, tornado, etc.) that would destroy the property and you would not be the named insured on the policy.