Turnkey 2 bed / 2bath rental - Off Market - For Sale By Owner
1,092 sq ft
Occupied by long term tenant
Cap Rate 8.85%
CoC 18.56% even with 20% down payment
Link to Bigger Pockets generated rental deal analyzer which includes current HOA, insurance and tax information.
Absolute NO BRAINER for the buy and hold investor, experienced or novice. This opportunity won't last long. Ever hear the saying "One man's trash, another man's treasure." Well this, is not that, but let me explain. My partners and I are very experienced residential fix N flippers, with aspirations of moving up into the multifamily space.
I never wanted to be in the SFH rental business, but my father died back in 2006. My mom couldn't afford to keep our family home, so I updated it, put it on the market and moved her into a smaller more affordable townhome. After I got married and started a family, she move in with us. Unfortunately the market crashed and it was underwater, so I rented out the townhome. Now the market is coming back and the mortgage has been paid down a little, so it's time to move on.
It's been rented to the same dream tenant for years and they have no plans on moving anytime soon. If they do they'd be easy to replace. Between the strong working class families, medical students and Fort Gordon, the rental market is very strong in Augusta.
The HVAC was replaced last year along with a new oven, so maintenance cost should continue to be low. If you're looking to put your toe in the water with an easy starter rental or just looking to add another one to your portfolio, this is an easy decision. But act fast as it won't last.
Call or text Denny Faircloth at 706-951-5726 or email [email protected]
Hi @Denny Faircloth , what about cap ex allocation and management?
Good call, I self manage so didn't factor those in, but you should, so here ya go!
Cap ex has been $4500 over the 16 year life of the home, so it's averaged under $300 a year or $25 a month. The current tenants have been there the entire time I've had it rented. They pay on time every month and never called me until the AC and stove issue last year. Honestly if they called and ask for new carpet, I'd do it for them. I'll definitely do it if they ever move out. Which doesn't look like that will be any time soon.
I do have a some other investor friends that own the exact same kind of rental units. One in particular I could recommend that would probably manage it for you for $50 a month.
Here is an updated report with that additional expenses. Still a 14% CoC and 7.8% cap
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