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
Congratulations! That is amazing. We also buy off the mls and quickly when we see the right deal.
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