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Can I get a commercial loan without 25% down?
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Id do it and if you dont want to DM me the details and if I buy it ill give you a 1k as a referal.
I’ll give you 2k!
Where is this? 50k for a place with 1350 rent gives off too good to be true vibes but based on your details this sounds like a no-brainer.
I would do it in a heart bit. Let’s say you put 15 K more in repairs. Your cost basis is 65K. Take $3K for taxes, insurance and ongoing maintenance/year. Your yearly revenue is $1350x12 - $3K. So total $13.2K/year on a )65K investment. This is 20% return. Also, depending upon where this property is, when you sell you may get more than $65K. Also you can apply for rent adjustment every year with Housing Authority.
Subject Expert
Where is this? Detroit?
A $50k house probably needs way more than $15k in repairs, you just know about the first $15k that’s obvious.
I’d buy a $100k house that rents for $1350 with a good tenant in there. So at $50k it’s a steal if everything you tell us is true.
Subject Expert
The “key things” that you probably already know:
- investment real estate trades based on cap rates and asset class
- cap rates are almost always overstated by the sellers
- amount of deferred maintenance is almost always understated by sellers
- inheriting “good tenants” are almost always not good.
- below market rate rents means plan for evictions / non renewals if you hope to raise rents to market rates
- how much you can tolerate all of this turbulence and turmoil to stabilize an asset is a personal preference
I don’t think any of that is new to you, so unless you have a specific question, I think you already know what you need to know.
I have another property in this area, but this one I could buy cash. My only real concern is the repairs after she moves out. I would get my money back after 4 years of renting it out so I’m curious if maybe it’s worth it? I don’t have to worry about finding a tenant either.
I’m curious what area this is, mind sharing?