I am buying a foreclosure for 66k cash. It is in rough shape. I plan on doing 34K cash in remodel and updating. The property has 3b 1b which I plan to add a half bath. There is an old garage the previous owner had turned into a separate 1b1ba in law suite. It has a decent 2 car garage with a work shop. The place had like 23 offers come in on the first day (Fri) and we went under contract the following Monday.
We plan to live there for a year or so then refinance to buy another house.
Had a couple approach me about perhaps renting out for ~2k(locked price, they cover utilities) a month for rent to own, straight 30yr fixed term with 1yr lease intervals. This is a fairly affluent area and I think this price would be and the very top end of the rental market. Expected taxes are around 4k a year. I don't know much about real estate and I downloaded some excel spreadsheets and read some stuff on Investopedia but I feel as if I'm missing something.
TL: DR We spent 100k for the property. 3b1ba another 1b1ba in law suite. Found renter for "Rent to own" contract 2k(Locked) a month, they cover utilities, 1yr intervals for 30yrs. 4k a year in taxes. Is this a good investment for me.
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