Single Family Home

Brick - 3 Bed - 1 Bath - Basement - Garage

Solid Middle Class Detroit Suburb

Price = $63,000

Closing & Repairs = $5000

Taxes = $2700

Insurance = $950

Maintenance = $1500

Potential Rent = $1025 - $1050

I would like to analyze this as a cash purchase.

But I will be using $60k @ 10% paid off in full over 3 years to finance this deal from a . I have other F&C rentals to cover the loan.

Thanks for the replys. Great to see others thoughts on these deals.

Is the maintenance number annual or monthly? What are your thoughts on known repairs?

3 yr payback is great. I'll take a few of those!

Maintenance is yearly. I have to replace the furnace & do a service change + small city cert requirements. Possible renter lined up already also.

It looks solid to me, although it would depend on the suburb to take appreciation into account. But Rick, how did you calculate three years payback?

Originally posted by @John Knappmann :
It looks solid to me, although it would depend on the suburb to take appreciation into account. But Rick, how did you calculate three years payback?

@John Knappmann

running the #'s he will have it paid off in 3 yrs but for 36 months he is out-of-pocket around $173/mo. (I also added $1500 a yr for preventative maintenance.)

It's an excellent strategy & its one I adhered to back in the days of (needing) financing (but similarly I could afford the annoying monthly loss).

This one is located in Garden City.

Thanks for the replys!

@Pat L. I like your line of thinking on this. Great Advice!