Small Town Maine - SFR Purchase

6 Replies

My real estate journey is heating up, in the process of closing on a 2 BR 1 BA (800 sqft) Single Family Home in Central Maine. Small town on the outskirts of a larger city for the area.

Purchase Price: 80k

Inspection came back pretty good, a lot of minor things. 

Estimated rehab cost to get rent ready: $5k

Projected rental income $900 - $1000

PITI: $445

Cash to close:  $21k (20% down,  closing cost)

Will be asking for seller credit instead of repairs so closing costs may come down a little for me.

Not a stellar cashflow, but also a pretty low risk. Est 10% CoC return.

Thinking the 2 BR 1 BA SFR may be my niche, I've had a great experience renting out the other similar style home I own in Virginia Beach. Typically families w/ one kid that take good care of the place.

Will follow up after closing plays out.

Originally posted by @Bethany Turon :

@Mike Berube Nice to see another local investor making moves! I'm under contract for a duplex in Auburn, looking to close at the end of the month. What town is your SFH in?

 @Bethany Turon the house is in Clinton, just outside of Waterville. I was looking at the multifamily properties in the area quite a bit, however they all seemed to be built in the early 1900's and had knob and tube wiring and cast iron flow is really good on them but the potential repair costs drove me toward small slightly newer Single Families for now.  Once i've got enough capital for 25% down on a newer multifamily i'll definitely be looking.

Very cool!  I've been starting to look at the Waterville area myself.  I don't know it at all but it seems the prices are really good compared to the rents.  You will have to keep us posted on how this works out for you.