Prior to the visit my agent already gathered information regarding this property's history, and we were able to confirm the facts as we walked through this Main House + Guest House rental property.
The Good: The exterior of the house is built of brick and overall the outside condition o the house looks solid. In the main house the living room has a nice solid wood floor, the kitchen cabinets have been remodeled, one of two bathroom looks renovated, and the two houses are completely detached with separate entrances. This place is zoned R3 so the guest house is permitted (awesome).
The Bad: Somehow my agent was able to obtain a copy of the inspection report from the prior buyer who eventually bailed from the deal (we are assuming the inspection report has something to do with it). Come to find out there are some major ticket items that needs to be fixed prior to closing: there's a mysterious leak in the gas line, water pressure running low in the bathroom facets, hack job electrical hook-up potential for major hazard, and the guest house needs major renovation before it is presentable to renters.
Bottom line: The original estimate of $8500 for rehab would not be enough which means the cash-in would be greater than estimate which inevitably pushes out the break-even point of the upfront investment. The rent potential is great; in fact I already have 3 people respond to my pseudo craigslist ad ready to pay $1550-1600 for both units together. A deal like this house may be hard to come by in the near future. Worth going for it? Your call!
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