Just Closed on Rental Property #6 Today 3/7/13

1509Update:  Repairs are in progress.  There was a giant gun safe that was in the basement, but we don’t know the combo.  I am sure it is worth a lot of money, but so far no luck in getting a hold of the old owner who lost the home to foreclosure.  After looking at rents I think my estimate of $1,200 to $1,250 is too low.  I think I can get at least $1,300.

After waiting 6 weeks for a title issue I finally closed on this property.  The purchase price was $115,000 with $2,000 in closing costs paid by the seller.  This property was an REO and priced a little higher than most of my purchases, but the home is in relatively good shape.  Here’s a video of the property.  The home is a ranch with a finished basement and about 2000 square feet total.  There are 3 bedrooms and a bath on the main floor, a family room, bedroom and bath in the basement.  The home has an attached one car garage and is only a few houses from a large park.

The best part about this property is it has an updated kitchen, updated bathrooms and new windows!  The only repairs needed are in the basement.  There is a storage room that I am going to expand so that I can have 5 bedrooms total.  The basement also needs floor coverings and some other minor repairs. Overall this home is in much better shape than most of the properties I buy.

As far as the numbers go, this home should rent for about $1,200 to $1,250 a month with tenants paying all utilities.  With principle, interest, taxes and insurance my payment will be about $540 a month.  I ended up paying $23,000 and some change at closing for down payment and lender/closing fees.  I will be getting back $3,450 for my commission on the sale and hope to spend less than $7,000 in repairs.  This property should take less than $30,000 total to get repaired and rented.  I should cash flow at least $500 a month which would equal over 20% ROI in the first year based off cash flow alone.

For a detailed look at my strategy and my other rental properties check out my complete guide to investing in long term rental properties. 

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5 responses to “Just Closed on Rental Property #6 Today 3/7/13

  1. Pingback: Invest Four More Rental Property #4 | Invest Four More

  2. Pingback: Invest Four More Rental Property # 2 | Invest Four More

  3. Pingback: A video of Invest Four More rental property #6 | Invest Four More

  4. Pingback: Rental Property Number 5 is Rented! | Invest Four More

  5. Pingback: Video of Rental Property Number 6 After the Rehab | Invest Four More

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