Turnkey SFH

[Andrew Vogt]

I've never invested in a turnkey property before. I typically go for rehabs, but I feel like property is too much of a good deal. I just want some input from others to assure I'm not missing something!

$84,900

Beds: 4

Baths: 2

Square Feet: 1,173

Property Type: Residential Single Family

Remarks
4BR Licensed rental property! New roof and insulation 2006, New furnace and Hot Water heater 2007. Vinyl siding. 3 car off street parking in back. Large 37x20 deck off front. 2 bedrooms and bath on main level, 2 legal bedrooms and bath on lower level with basement walk out. 100 amp electrical, Washer/Dryer, and newer appliances. Good rental history.

Paging through all the pictures, it looks pretty turnkey. I know I can rent this place to college kids for $350/per bedroom ($1400).

So my math breaks down like this:

Purchase- $85,000

Down Payment- $17,000

Mortgage (80%)-$68,000 (@7%, $450/mo)

T&I- about $200/mo

Vacancy and Repairs (15%)- $210/mo

Total Costs- $860/mo

$1400-$860=$540 cash flow

Cash on Cash-($540*24mo)/$17,000=76%

Cash on Cash w/ mortgage-($990*24mo)/$17,000=139%

This looks to be a great deal... Am I missing something?

[Curt Davis]

Where are you or anyone buying turnkey for $84,900 that rents for $1,400?

If those numbers are correct you should snatch that place up yesterday!!! I sell homes for $84,900 that rent for about $925 on average.