All Forum Posts by: Doug Morton

Completely renovated duplex in Walterboro, SC. 

Two one bedroom, one bathroom apartments.

Updated March 2017.  New roof, new flooring (vinyl tile and roll), new windows, doors, updated electrical, new plumbing, new insulation, paint inside and out, new drywall, new HVAC units.

TurnKey Rental! Both sides occupied and pay rent on time.  $965 gross rent.

Call Sol Homes - 843-885-8381, [email protected]

I agree with the inverse relationship with cash flow and appreciation in these rentals under $100k.  A retail price will be priced according to market forces.  If it's too cheap, you are probably spending a lot to rehab the house and it's probably in a depressed area (not necessarily warzone) and not going to appreciate rapidly.  But your cash flow is probably really good.  Appreciation is always a bonus, not a given, otherwise you're just speculating.

I have a duplex in Walterboro that finished the rehab this week with screened tenants moving in next week. It's price is $80k ($40k per door) with $490 monthly rent per side with close to 10% ROI.

Inside pics will be available near the end of the week.  Renovation is ongoing.

This duplex is being remodeled currently and will be up for rent Feb 15, 2017.  Each side will bring in $500 (total $1000 gross rent for both sides).  Picture attached is the proposed remodeled home.  

Renovations include new roof, plumbing, updated electrical, new HVAC systems, flooring, kitchen and bathroom updates and cabinetry, insulation.  

Screened tenants will be placed ASAP.  Good volume of inquiries with rental feelers placed on several rental syndication sites.  Picture shown is the proposed remodel picture.  New updated pictures available soon.

Sol Homes - Doug - 843-885-8381, [email protected]

http://solhomesllc.com/estate/sc-walterboro-duplex-1br1ba/As listed on our website...

This is tough to answer.  

You'll have a hard time finding a good $40k house that will cash flow positive for you.  Looking at the rental house calculator in BP, you'd have to find a home with an all-in price (all expenses and rehab costs) of about $38,500 and it would have to rent for $700 a month.  That's a hard find but they are out there.  See the screenshot.  The expenses could be lessened but I think you'll be hard pressed to find this ideal $40k house.  Good return on investment if you can find it.  

You could get investment loans from banks and buy a couple/three houses and use the $40k as your down on them both at 20 to 25% down depending on the bank.  This would be good leverage for rentals. Find three houses or a quadruplex for a total up to $200k with 40k down.  You'll want some money in the bank for a rainy day so you may want to buy less home.

You could joint venture with a bigger investor on multi unit deals.  Make sure you vet who you are investing with...check all references and past deals.

You could joint venture on a fix/flip. Plenty of contractors/investors out there with deals. You can make 10% to 12% APR plus a couple points in three months. Make sure you get an attorney filed mortgage on the property (paid by the borrower) and set up an inspection based draw payment (deposit, exterior, interior, punch list is fairly common). Again check references and past deals. 12% on $40k over three months is $400 a month for $1200 total plus a couple points (2%) for your up front fee equals $800 - will net you $2000 in three months.

Lots more ways to do this.  I do all the above... I have a couple 40k homes.  It depends on the day if it's a good investment (another blog story for another day).  I fix/flip and there's never enough money so we look for private money.  I've got some owner finance deals where I got control of a cash flow positive rental for $5,000.  Those are nice but hard to come by.

I hope this helps.

Doug

2 bedroom, 1 bathroom, 680sf bungalow.Completed deep rehab 3/2016, new electrical, new plumbing, updated kitchen and bath, new appliances. New HVAC heat pump with central heat/air, new windows. new flooring, new paint interior and exterior, laundry closet in kitchen. Sol Homes - Doug Morton 843-885-8381, [email protected]

Screened tenant in place paying $700/month through next April 2017.  Rental calculator provides 10% cash on cash return on investment with conservative expenses (capex, maintenance, 10% property management, vacancy).  When listed for rental, 60 people called.  

Picture of front of home.  Fencing has been painted white. 

I have a 3/2 rental home in South Euclid that needs some updates (paint, carpet, kitchen doors/hardware) performed and also looking for a property manager for this property to get a tenant in place. Contact me for details.

Doug
Sol Homes
843-885-8381
[email protected]

Another thought is access to the back of the lot.  Is it wide enough for a flag lot access point on the right side?  Or will they have to share the driveway?  I never did look into that when I had it but it crossed my mind.

This house is sold.

3/1, 972sf brick ranch, good bones, need rehab (flooring, kitchen, bath, paint interior, exterior trim, landscaping). Good potential for rental income generator with colleges in near vicinity. ARV at $50 to 60k. Investor priced, handyman special.

See house pics at:

http://solhomesllc.com/wwwsolhomesllccom_property-details.aspx?id=5749681