Asking price is 80k. It has a new roof and AC. Needs a new electrical box, inside painting, master bathroom remodeling, and a small fix to the roof overhang. Realtor is a family friend and assured me its a great deal. I don't doubt her but I'm hesitant to pursue it. After doing all the repairs it will cost at least 85k (80k + 5k repairs) to get it rent ready and realtor says it would get 800-850 in rent. It seems like a perfect rental. I can afford it but I question whether it will be worth it as opposed to putting my extra money into VTSAX.
I was looking at investment property as though my return is what my tenant pays toward principal + any excess after I pay taxes and renters insurance subtracted by (closing costs / 30). So I think I will be cutting even month to month, probably better investment options, huh?
fwiw, I was preapproved for a 3.875% fixed interest rate (secondary home loan) with 6k in closing costs! Current owners live in the house so there probably isn't any major electrical or plumbing problems but idk for sure. Its a 1150 sq.ft 3/2 in a quite neighborhood in a good location (close to the downtown). I would put down 16k (20%) on a conventional loan. Would finance the 64k. I estimate my monthly payment would be $550-600 on a 30-year loan. When I look at this way it doesn't look so bad. As long as I don't have more than an average of $200 in monthly repairs I would be ok. Tough decision.