1B/1B house for sale

2 Replies

I found a lead on a 1 bed 1 bath house recently and I have emailed the owner.

First off, I would consider moving into this small house in the future.

Asking price is $20,000

Taxes are estimated to be less than $800 a year.

Stove, Fridge, Washer and Dryer Included

Car port with small storage unit

Newer windows

A/C is a window unit

Roof Age currently unknown

It has a large back yard and is located in the quieter part of a small college city.

10,000 permanent residents and 9,000 students roughly estimated

Here is what I am thinking in terms of buying this place.

Buy it for cash and then rent it for $400 to 1 of the following types of tenants

A retired person or couple.

A graduate student at the university who wants to be away from the party scene.

Lease option it to a recent graduate.

If I move into the house in the future I would like to add more rooms since it has such a large backyard.

Thanks in advance for any thoughts or advice.

Offer him 13k cash and go from there. Looks like a good deal from what you've presented.

@John Van Uytven

$400/month isn't going to get much done. I budget $150/month at a minimum for repairs, so I doubt this place is going to make much money. Furnaces will break, the roof will need to be repaired and eventually the water heater will cease to function.

I'd look at it using @Sam Jones 's 13k number if I could get $550/month in rent. I want to see $150/month cash flow AND 15% Cash on Cash return.

Here is how I see this deal:
Monthly Mortgage payment$0.00

Taxes $66.67

Sewer and Water $- (tenant paid)

Trash $- (tenant paid)

Heat/Utilities $- (tenant paid)

HOA $- (none)

Cap Ex and Ops $150.00

Insurance $54.17

Mgmt Fee $- (self managed)

Vacancy $44.00

Total Expenses $314.83

Total Revenue $550.00

Cashflow/month $235.17

Cashflow/year $2,822.00

Cash on Cash Return 15.25%

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