Inspired by recent podcast. I want to fuel it by one of the example of my own to prove again that boring is real sexy in real estate!
This is a typical deal in Houston Texas back in the 2011-2012. Single family home 1100 Square Feet 3/2/2 - 2006 built for sale by seller on the MLS - need no repair for $79000. I simply put down 20% as the down payment with a 30 years mortgage to close the deal
I spent a weekend to clean it up, lease it out, and multiple application came in within the 1st week on market.
Principle and Interest is only at $324.24. tax and insurance is at $316.49 (yes i do fight my property tax every single year) and rent is at 1150 . Anyone can do the math. This is one of those deal that i don't even have to pull out my calculator to see how much is the return before i buy.
Unlike what you see on the TV show where they they chew each other head off at the court house to buy property, or have a team of 20 people show up to gut down the crappy house and put in fancy stuff. I send in a simple real estate contract to secure the deal, drag my gf out of her bed, and we showed up at the property after closing with a broom and the trash can
Fancy is sexy! Boring is sexier!
What about you? I would love to hear about your boring deal! please post it in the reply!
Sexy indeed! That's a great deal!!!
I think you bring up a good point. You can get rick quicker with off-the-wall, high-risk, creative deals - but those are also high-risk. Personally, I'll take those boring sexy deals all-day long.
Smaller place in a good area in Charlotte. ~1600 sqr ft on nearly 1/4 acre. 3/2.5., built in 2010. Paid 97,000 but is move-in ready. Rents for 1100 and rented within a week of closing. Solid single.
Simple 4/2 in Florida that I just finished up minor rehab. I found it on MLS on a Friday afternoon for $48k, had a signed contract Monday morning, closing 10 days after my offer. It was such a great find that before closing happened I was offered $75k as it sat. It was a probate deal that cost me $325 total closing, and $4500 to get it ready to rent. New tenant moving in for $950/month tomorrow. Not a stellar deal, but a real winner that just fell in my lap with virtually no effort required. My realtor said that it is now worth about $100k. So I will do a 50% LTV cash out refi when eligible and have no money tied up in it and still cash flow over $200/month. Boring deal, yes. Sexy return for the effort, you bet!
Do you have any before pictures?
Hi @David C. ,
unfortunately (and fortunately) I don't have any before pictures because the before look exactly the same as the after. Like i said. I just show up with a broom with my gf and we just sweeped up the place and take pictures
@Huy N. congrats! I'm a newbie looking to do his first deal, but this is inspiring. I hope to post about my boring and sexy deal soon. Cheers!
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