#37 rental was purchased today
I closed on #37 this morning. it's located in westland. the surrounding cities are Canton, Garden City, Livonia, Redford and Plymouth.
it's very different than what we normally buy to a point that it's unusual for us. we always get 3 bed brick ranches with a basement (see the website in my profile to see a list of them) but this is a bi-level. that means that once you enter the front door, there is a landing - then stairs UP and stairs DOWN. the rooms are upstairs and the dining/kitchen are downstairs. no actual defined "basement".
the living room is upstairs and it will be converted into a 4th bedroom. an extra room means more rent for me.
here's what the numbers look like:
purchase price - 72k cash (they were asking 79k)
rehab - who cares, but around 12k,i'd guess. maybe 15k. the bank had to change the roof since it was caving in.
taxes - ~3k, maybe less
rent - $1,250 (no garage, but a shed)
ARV - i dont know, maybe around 110 (but i dont care about arv)
we just updated #31 and have a few just waiting for us to get "free", but that does not seem to happen. so i am just holding 2 vacant at the moment.
between updating flips for other investors in Plymouth, baths for homeowners in Northville and basements in Livonia, it's hard to find the time to work on all our houses.
it will cashflow nicely, around $350, maybe more, maybe less. at this point, i am more concerned about the number of rentals to increase as long as there's a cashflow over $300. fifty dollars a month is not a deal breaker.
i still self manage everything, have an assistant that rents them out. i have developed a team and a system that lets us crank them out consistently and at a very high quality. i do not like to have issues once rented and hate going back to fix things that we could have caught while working on them...so we take our time and change everything that needs changing.
let me know if there are questions, i'll answer anything.
Most Popular Reply
Is $350 cash flow worth spending $72k?