First buy, flip, hold success!!! First deal ever success!!!
We just collected first month's rent this evening! We screened and declined several applicants (even returned a deposit to hold for one declined applicant - took a lot of self control)and finally settled on some tenants that gave us the warm fuzzies and passed the background/credit/rent history/work verification with flying colors!
Here is the breakdown of the deal. Tell me what you think!
Low income working class neighborhood. Not a war zone! Safe at night.
Purchase price + Closing costs = 13,000 cash
Cost to renovate + Appliances= 6000 financed at 12% interest with visa
New central HVAC = 4000 financed at 14% interest with signature LOC at 5 years
Annual insurance = $500
Annual taxes = $600
My time to rehab = every weekend for 2.5 months
Rent = $550/month
Deposit = $300
Leased within one day of completed rehab.First months rent and deposit in hand prior to letting keys.
ARV hard to pin down but conservatively = 35K-40K in current market.