Rental Property Analysis Info
Hi,
I've just had my first potential rental property inspected. It's a 2 fam and the basement has potential to "extend" the first floor and add a 2nd bathroom and a 2nd bedroom. The basement was galvanized piping and the rehabber has replaced some of it and not others.
there are signs asbestos and molding.
I also think the walls need to be coated to prevent further mositure from creeping in. Water pressure on the 2nd floor is low. I think it's the 50-70yr old galvanized piping.
He's asking 172k, and rents would be about 1700-1900/mo.
comments? suggestions?
thanks
How are you going to make any money ? Sounds like a retail purchase with a huge honey do list. If you want to buy this because you love the property and want to keep it forever you will not make it. This is how I first started and went broke. I thought I could at least break even because I could fix stuff really cheap myself, You gotta buy cheaper property or that property cheaper. I am buying a duplex for $35,000 and fixing it up and renting for $1000 per month. The fix up will bw less than $5000. This is low income property but it makes money. Even when empty the payment is less than $500. I would hate to have that big mortgage you are going to have.
Good LUCK and HAPPY HOLIDAYS
Hope this helps some
Ted Jr
Hi Ted,
What ratio, then, do you look for?
This is the north east. Duplex's aren't bought for 35k. Any decent 2 fam property is bought for 150K+
thanks
-Ariel
Asbestos and mold could be very expensive problems to remediate. I wonder if the code enforcement office, or building inspector, will give you an occupancy permit until these issues are addressed.
You leave yourself wide open to very expensive lawsuits if you ignore these problems and put renters in place anyway.
Hi Dave T,
I don't plan to. These items are deal killers as far as I'm concerned.
Thanks
-a