under contract at 170k
Insurance $125/month (actual quote from insurance)
Financing: 20% down at 4.65% for 30 years
Electricity is tenant paid and the plan is reduce rents to 610 and pass the other utilities on to the tenants as well. Any thoughts on this deal, am I missing anything?
Looks like a great deal. Go buy it :)
Looks solid! I'd go for it in a heartbeat.
Looks like a great opportunity for you.
Looks like a great deal overall! A few thoughts:
- Are those taxes based on actual numbers? They do seem a bit on the low side, so I would factor in a potential increase in the future
- At 1.5% rent:price ratio, you're definitely on the right track. What kind of area is this in, though? If the neighborhood isn't great, 5% vacancy might be a stretch - safer to plan for something more like 10%.
- Do you plan to do any work on the property up-front? Any capex needed to get the property individually metered for gas/water ? This will affect the COC number
Let us know how it goes if you go forward with the deal, and please share pics as well! Good luck!
-Taxes are based on actual numbers of $2,700, which I then increased 11% to get $3,000.
-neighborhood is a C+, but in a very desirable school district (HEB ISD)
-property was fully renovated in September 2014, but could possibly need new water heater and condenser soon for one unit. It appears that may incorporate a RUBS program instead of separately metering water/gas. However, as it stands I'm cash flow positive (on paper).
Closing is set for June 30th. We will see how the walk through goes tomorrow.
That's great on the taxes
Curious, what is the unit mix? How many bedrooms?
For the water heater - make sure to read this page before paying for a full replacement. Just spreading the word :)
Good luck with your walkthrough!
Hope the deal goes well! From what I hear HEB is a nice area.
I just read the article you posted in the link and I've never heard anything about those rods. Where did you come across this advice. It seems pretty logical but then again I don't know much about hot water heaters.
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