Updated almost 8 years ago on . Most recent reply
Two-Feet Worth of Cat Feces!!!
The Cat House
A few blocks away from the University of Arizona in a neighborhood known for prime real estate, we had the opportunity to purchase a very rundown property. A house with a lot of promise and character has been overwhelmed by cat feces and was also condemned by the city due to roach infestation.
The house is going to need a complete renovation to be turned into a profitable investment, and the first step is to remove the 2-feet worth of feces. The purchase price was $96,000, and the remodel costs are still to be determined.
With our calculations, it’ll most likely come out to a $120,000 remodel. From there, the comps suggest a $300,000 purchase price or $2,000 in monthly rental income. Due to Tucson's continuing appreciation, the rental option may be the better play here.
As you can see in the pictures below that the house has a great face. With two large windows, a covered patio in the front, and a swimming pool in the backyard. This would make a lovely home for a family, or a great college rental.
We are very excited about this one and will definitely keep the BP community updated with the progress!
Most Popular Reply
#2 General Landlording & Rental Properties Contributor
Absolutely terrible choice for a rental. Rent to value is too low (negative cash flow) and having a pool is a absolute no go in a rental. Young family, college students you are asking for a drowning lawsuit. Insurance liability risk is off the chart.
Even if you filled in the pool, which is the logical approach with a rental, you will not see positive cash flow on a property worth 300K.
Flip it and move on.