Hello BP Community,
We are out of the gates fast. They say the second deal and subsequent deals happen quickly after the first. So… We closed the first deal on Weds 11/15 (Lyman Duplex), and got the 2nd deal into contract on Fri 11/17 (Parrakeet House). This deal will close on 12/1. The team will start the repairs necessary to prepare the house for occupancy.
That said, here are some details of our 2nd deal:
- Location: Toledo OH
- Type: Single Family (2/1)
- Purchase Price: $23,000
- Estimated Repair Costs: $4,000
- After Repair Value (ARV): $38,000
- Market Rent: $700
- 2% Rule / Rent to Price: 3.04%%
- Cash on Cash (COC): 18.89%
- Cash Purchase
This is a long-term buy and hold. As we progress building our portfolio. We will be focused on serving Section 8 and Housing Authority tenants. That said, we are committed to giving our residents safe, secure, solid housing. The zip codes we focus in are certainly not war zones. We’re targeting our acquisitions in solid neighborhoods (7 out of 10 score; or B-/C+). Our team on the ground understands our criteria and we are aligned in our missions.
This deal gives us the perfect case study comparison between the results from the duplex and the Single Family Residence (SFR) . On paper, the SFR seems to have the most potential for higher performance and less turnover. Both properties are in the same zip code, so we'll get a good picture of the outcomes over the next several months.
Deal #3 will likely take a bit longer to materialize. Unless a deal comes up that we just can’t refuse, we will be stalling out for about 4-5 months to attack the debt load and prepare. So,.. for the next few months we are stacking chips, and stabilizing these 2 deals.
We’ll keep you posted.
Once again, I want to give a shout out to @Andrew Fidler for all his help so far.
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