Potential First Deal
Hi All,
I am looking at my first deal. There is an investor who got divorced and needs to sell. There are 2 properties that have been rehabbed 3 years ago. New heatpump, windows, siding, roof, plumbing and electric. The properties are currently rented at $400 each, with long term tenants. Both tenants under a one year lease that got just renewed. I used rent-o-meter and it stated that $400 was a great deal only 4& of comparable properties had lower rent.
The properties are 2 bed one bath in a marginal neigborhood. Comps in the area have been sold for $35,000 - $40,000. The taxable value on each property is $26,000 and annual taxes here are $400each.
The seller is willing to accept $23,000 for each unit. The title is clean and there are no liens.
Is this a good deal or not?
Best advice I can offer, go to the library and check out RE investing books and watch TV shows and/or others in your area doing the same thing. Start small and work your way up. Line up financing or hopefully save cash and then find the deal. Learn to do as much of the work yourself initially. Have PATIENCE, the deal will come. Waited a year for my current deal, but will profit more than double the last one!!!