Analyze these deals

3 Replies

Deal #1 - 2 unit currently rented at $1150 per month. Built in 1900 new siding roof and furnace. On a busy road in a C area. located close to downtown and currently rented by college students (good or bad?)
Asking price is $32,900 i'm going to start at $22K
Morgtage w/ escrow and maintennce $100 est per month - 430
Down payment $5,000 @ $25K PP
Annual rent @ 93% occupancy - $12,834
Annual expenses @ $7662
COC return 1.5%

Deal#2
2 bed 1 bath 800 sq ft house in a C- area
Asking price is $19900 and motived sellers - going to start $8800
Mortgage with exrow and $100 maintennce per month - 370
Annual rent @ 500$ per month $5580
Annual expenes @ 4458
COC return 56%
Built in 1930

Deal#3
3 bed 1 bath in an A area
Septic tank might need relplacing (REO property) Roof and furnace is shot
HUBZU property
Asking price is $50K (been on the market 1.5 years) and will try to get for high $20's. ARV at peak levels is $90K and will rent $1000 per month.
Morgtage with escrow - $460
Annual rent $12K
Annual exp $5600
COC return 95%
Built in 1965

I'm not a fan of 1900-1940s houses but the value is there. I really like investing in better areas but the ROI on these properties are pretty well. Are you seeing ROI's like these in your areas? Thanks all!

Those seem like pretty awesome deals, compared to Nashville. That doesn't really tell you anything useful, though, because you want to compare them to the deals available in your area. Are these properties in Grand Rapids?

Your numbers look good with potential cap rates above 10%.  I would expect that each deal needs some rehab.  I would wonder why deal # 3 has been on the market so long.

How did you come up with your purchase prices?  Numbers are good at asking prices.

No, I don't see these numbers in my markets.

Good Luck.

Bill

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