1st Deal!please Help!
I am looking into my first investment purchase. It is for two row homes in baltimore for $60,000 ($30,000 each). comps in the area have been $50-$60k for rehabbed propertiesThere is a tenant in one house paying $450/month. The other house needs light rehabing(all new windows and doors, sanding walls and repainting, new bathroom and light fixtures, some drywall, and cleaning of mold.) I have yet to view the other property since it has a tenant on a month to month lease. I know it needs new windows and that it must be livable to some extent.
Once I rehab the vacant property i should be able to get at least $450 from it
Questions are:
Is this a sound investment?
How difficult/expensive is it to clean up and remove mold?
would it be better to hold these properties long term or do a major rehab and resell?
There are a lot of unknowns here. If you are planning on doing the work yourself, there may be some room to make some money. If you are going to hire the work out, it is going to get really tight.
Are you going to get a loan for the properties? If so, what would the loan amount be including the repair costs and taxes? Then, figure out what the monthly payments would be and compare it to the rental income. You might be able to make the mortgage payments but it doesn't look like there is a lot of money to be made for all of your work.
if there is mold i would want to find out why. it will be a water related issue. if you find the reason and it dry the mold will die.......km
thank you very much. I was planning on budgeting no more than $5000 per property, but really expected to put in about $2500 for the current rental and between $3-4k on the vacant property.
I do not yet know the cause of mold but have been "assured" that it is due to poor care of a basement door leak rather than the foundation. I will need to check into this more. I would rather check myself rather than have a home inspector come in. What are the best ways that i can check and what problems can be inexpensively fixed and what problems will be expensive.
thank you again