Hey Mustachians,
There is an inner city foreclosure property i am interested in. It is located in what some would consider a "not so great" area of town, but is fortunately just a few blocks from a major Virginian university so several of the homes around this property are rented out by students.
This is a foreclosure property evaluated around $90,000 and has 3 beds 1.5 bath. The home next door is 4 bed, 2 bath and is rented for $1700/month before utilities. Following the basic 1% rule, i figured I could estimate monthly costs to be around $900/month while renting it out for about $1350/month. I don't have any sort of substantial experience with construction, but would be willing to put in the work for what I would be comfortable with (painting, demo, flooring).
I will contact a title company to evaluate if there are any liens on the property, and have not been able to see the inside of the home. The exterior seems to be in fine condition.
Are there any additional steps or processes you would recommend? Is this type of home generally not a good buy?
Thanks,
Maz Phil