Updated almost 8 years ago on . Most recent reply
First Out of State - Under Contract
I visited my dad in my hometown of Fort Wayne, IN this weekend, while also having an appointment to check out a SFR on the market. I also visited an old friend whose wedding I'm going to in June, and it just so happened that she was 5 days away from listing her house that she had bought two years ago (once married, she's moving to Indy where her fiancee lives).
After doing the necessary homework, I got home and decided to send her an offer before she had the chance to actually list it. It's in the dead center of a top school district, and I would have definitely had competition. I will be self-managing from Chicago, with my Dad as my handyman/drive by lookout when needed. Obviously, I still ran the numbers as if I had a PM in place.
I turned 26 a few weeks ago, and this is my 3rd property since July 2017. I'm really starting to get more and more comfortable, which is a fun feeling. Here are the numbers:
Listing price (what it would have been): $135,000
Offer: $130,000
Contract: $132,500, with her paying $489 for a home warranty
20% down at 5% interest
Rent: $1400 (3/2 single family ranch with attached 2 car garage)
Tenant pays all utilities (even down to trash pickup)
Cash Flow: $250/month after CapEx, Maintenance, Mgmt, etc; $115/month if using 50% rule
Most Popular Reply
Derek Luttrell has it been updated is there a lot of deferred maintenance? You may have a hard time getting 5 percent interest on investor loan. Most of what I’ve seen is now 5.25-5.5 percent. Not sure if that changes numbers a lot.
Otherwise it looks pretty good. I have yet to buy a rental over 80k so this would be new to me.
Good luck! That tenant class will be a breeze to manage though.