put it on the MLS NOW wth me and we will sell it for about $60,000 and you will know exactly how much you have to work with and what needs to be done and the profit...in the end if you can walk with 20 K and do it with 100 hours of labor and 20 K in parts you win
i don't see another solution! Never heard about 3 years seasoning on the property before!
Cost to fix = $35k
Taxes = $3k/yr
Insurance = $1k/yr
Miscellaneous = $1k/yr
Rent = $600/mo (You can likely get much more).
Therefore Income = $7200/yr
Expenses = $5k
Net Profit = $2200/yr
ROI = $2200/$35000 = 6.3%/yr
If Rent = $1k/mo, Then
$7k/$35k = 20% = ROI
Plug and chug the real numbers and you are likely to have much higher returns.
If you fix up the property nice enough you may be able to pass a Sec 8 Inspection.
Good luck and keep in mind there are always unforeseen expenses and headaches with home ownership. Consider using a property manager if you are not experienced.
The city will not let it just sit, you will find they are going to poke and prod you to either act or they are going to work on getting you to Demo court. That path will cost you money.
You should be able to get market rate tenants for $1000+ a month. Whether or not a voucher tenant wants or can live there will depend on the work you do and the area the house is in.
You are right about the timeframe for selling it, you can expect it will take you at least 36 months to see enough turn around in that market to even find a buyer. i would say more like 60 months.
The good news is if you do your homework and get the right tenant, you can make 20% on that investment over the next few years.
If you want to talk about getting out of it now, give me a call or write me back.
We have several houses like this in Garfield Park.
Dave Hanna 773-732-9123