BiggerPockets

Property management and 1 year Section 8 tenant with monthly rent at $750. Recent new roofing, doors, paint, HW tank, updated 100 amp meter boxes (in and out), rebuilt 1 bay garage + large work shop and much more. Not many properties in the area have separate garage and a corner lot like this one. Prior sale on June 8 2007 of $79,135 before rehab.

3 Bedrooms
1.5 Bathroom
1 car garage + workshop
1.5 Story
1150 sq ft
4356 sq ft Corner Lot
Year Built 1951
Fenced back yard
Fully rehabbed + rebuilt Garage/workshop
Section 8 Rented $750

Asking Price $42,500

After Repaired Value $65,000
(With so many foreclosures its hard to determine as there are ($1000 - $80,000 sold listings)

Income-Section 8 (rent @ $750/month) $9,000
Annual Expenses
- Taxes $589
- Insurance $600
- Property Management (10%) $900
- Vacancy $750
- Maintenance $960
Total Expenses $3,799

Net Annual Cash Flow $5,201
Instant Equity $22,500
Net Cash Flow/mo $433/mo

I need to cash out as I have private money in the deal and they want to move on so I can't do a creative deal unfortunately. I am making absolutely no profit.

Would appreciate any feedback or questions. Please PM me for pictures.

Thanks

Interesting. Zillow shows the house as Sold in 06/06/2008 for: $13,153. You're saying that the rehab cost $29,347? Wow! That's a lot of rehab.... :mrgreen:

To comply with the 2% rule which most newbies here would buy by since it's being advocated so much here, you need to sell it by $37,500. You may go up to $39K however, you have so many properties that are sold for $8,000 - $15,000 within less then a mile of the property, that it is not that attractive to spend that much money. I know, your property seems to be well rehabed (Judging by Zillow's pictures) and it is already have a tenant, but still it's not a "deal". I would be more comfortable as a buyer with $35-38K.

Good luck anyway,