This is a 1200sq ft 3/1/1 fsbo single family house in Garland (average area). Talked to the owner who owes 45k. Repairs needed are paint, carpet, possibly tile she said, and the garage is currently setup as a bedroom (possibly converting back to garage??? not sure…)
Purchase price: 45k + 5k repairs
Mortgage: $366/month (50k @ 8% Do I need to figure closing costs in here also???)
Rents in the area: 850-1000 (need to do a little more research to narrow down the rent rate, but I was thinking of rent for $925)
Well after talking to other investors, they seem to think that in the area a 4br instead of a garage with 3br would be better anyway. I haven’t actually seen the place yet so there will most likely be more repairs I’m thinking. Paint/carpet shouldnt be a big deal. I can paint myself. Carpet, not sure…never done. Tiling I can do myself if I need to.
As far as financing, to be honest I’m not sure about what my rate would be. The plan would be to get conventional financing.
BUT, I’m not sure I will be able to get the $925/month for rent that I would NEED for $100/month cash flow. Well, after down payment, it would be…But just using the 50% rule without down payment, cash flowing $100/month I think will be cutting it somewhat close. I was debating on a rental or just wholesaling it depending on how the place looks…