We will be updating the journal soon on this.
Purchase Price : $31,500
Estimated rehab : $30,000
Hopeful Resale price : $99,900
Closing costs – <$8,000
Profit : $30,400
This is one of the few potentially ‘hands off’ deals we’ve had. A traditionally listed MLS duplex, no distress, just owners tired of managing a rental property.
There appears to be no rehab needed. The noteworthy thing about this rental is that one tenant has been in the duplex for over 37 years! Pretty amazing, we will be the seventh landlord she’s had since she’s lived there. We plan on being the last since this seems to be a great money maker.
Well, we are at the start of another week. The past few weeks I’ve been pretty good overall. Hopefully we will stop burning through cash reserves at the pace that we have the past couple months. We went over around $10,000 on the rehab on property #12 and likely will go a little over on property #13 thankfully, the business has been very strong. I’ve had a couple tenants come back late on my rent.
Last week we received new Capital from a brand new investor partner. I am really excited about the future with this investor as well as the infected will have on our existing business. Operations likely will only be able to slip two more properties through the end of the year. This is because the bank still difficult to work with. They are requesting two to three years of seasoning on our existing properties.
We are about through the year now and so far imagined. I had hoped by the halfway mark we would be up to 30 properties instead, we’re still at 18 units, the same number that we were at during March. With the offer I put in today and the extra property I am viewing tonight if we were able to purchase then they would take us up to a total of 14 properties consisting of 21 units total almost halfway to our 2015 goal. Our 2015 end year goal is 50 total units.
Cash flow from these new units looks to be very similar to where we are at now, the duplex will be quite interesting though. They are asking $50k for it with a total of $935 and income. This is a little low compared to the current houses however we may be able to get the rent up. Interestingly enough one of the tenants in there has been living for a 37 year exclamation.
I would like to raise the rent on this tenant a little bit so we can get closer to the $1100 mark. Locally this is a very fair amount. I am seeing more and more two-bedroom units rent out for $600 to $700 dollars a month. This is significantly higher than our average two bedroom unit which sits right around $500 per month. It means that when we have to replace tennants I expect a sizable increase in the amount of rent we collect. I am NOT one to raise rent significantly existing tenants.
If this, I do believe that by September we are looking at 35. I am looking at a quad plex as well