We're in the process of purchasing an inexpensive rental.
We'll be paying $38,000 for it. Repairs will cost around $10,000.
We expect to rent it out for about $800. It has a number of nice features in it that you won't usually find in rental homes at that price point. We would be happy to get more for it (and might), but we're not counting on that.
There is a workshop in the back yard. Half the repair cost, i.e., around $5000, will be needed to repair it or bring it up to code.
That's with us doing most of the work, and there's a goodly amount of work to do.
There's a lean-to roof attached to it that's rotted. Simple construction but it has to be fixed. The lean-to has a fence around it that needs some minor repair work.
The masonite boards on the side of the workshop have a lot of water damage and have to be torn off and replaced.
The circuit box (it has its own) is clearly not up to code. There are unsecured electrical wires snaking across the floor.f
The sheet rock on the walls is mostly ok, but the ceiling sheet rock looks like a wall-eyed drunken Picasso wannabee put it up.
Roof and floor are ok.
Now, I'm the kind of guy who would LOVE a workshop. But most people don't seem to want one. We might rebrand it as a kid's playhouse.
So, do you think we would get enough additional rent out of our $5000 repair bill to make it worth it? Or is it just more stuff to maintain for the same rent?