Sometimes things work out when you're diligent and swift to act. I don't acquire a ton of properties probably averaging a few units per year. Here is the skinny on the one I just closed.
MLS listing 44,900, acquired at full price no contingency
assessed value 63,000
4 bed 1 bath built 1920
1286 Sq ft 4 bed 1 bath
Hardwood floors and oak moldings (unpainted throughout)
New vinyl windows 2nd Floor
New tear off roof 1 yr old.
New vinyl siding not very old.
Off street parking
Location is in the path of progress (less than 1 mile from Rochester's #1 employer)
Screening tenants at 1200 / month, with current applicants.
gross rent yearly = 14,400
less 35% (10%PM, 10% Vacancy Reserve, 10% Capital Reserve, 5% Repair Reserve)
minus operating costs (2246 taxes, 600 insurance) = 6514
cash on all cash return = 14.5%
looks like a great deal. I am surprised the rents are that high in an area that houses can be bought at that price.
Thanks @Arlan Potter we're definitely looking to hit the top of the market. The 4th bedroom is key, as is the condition. The wood moldings / detail work is really really nice. This house was in the same family for over 60 years and it really shows. If the house were more in line with a typical rental property condition we would be looking at 1050-1100. This one shines in comparison so we do get a premium for that. I'll update the thread with the actual rental rate when we sign an agreement.
Plus they typically don't sell for such a discount, hence why I scooped it up before it became a multi offer getting pushed past list.
@Mark Updegraff In our market there are agents who hit the HOT list when it comes out at 3am LOL
Jay Hinrichs, TurnKey-Reviews.com | Podcast Guest on Show #222
Congratulations! That is amazing. We also buy off the mls and quickly when we see the right deal.
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