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May be buying another house

April 30th, 2017 at 07:10 pm

HI all

My manager found a potential deal of a house he used to manage for past 5 years. Already rented for $950. Sold for tax deeds. Tax buyer is trying to get $30k just to get rid of it. House is solid may need new roof on back 'overhang' and can update the bath after tenant moves out as needed. Hardwood, 8 year old roof, newer water heater and furnace. 960 square feet. He figures it is worth more like $60-65k. He was just in it last week.

I am putting an offer on it tomorrow am

Below is my sheet where I figured out potential costs and put the price at $40k to accomodate any fix up and if price goes up. The .1671 represents a cap rate of 16.71. $900 represents rent. $567 represents potential net profit per month.




Rachael

2 Responses to “May be buying another house”

  1. LivingAlmostLarge Says:

    wow what a deal. $30k rental that rents for $900?

  2. rachael Says:

    yep. guy is out of town and priced it wrong. rent is verified by my guy. no word on contract yet. I am hoping they acccept contract (it was full price) and do not put out a request for 'highest and best' offer to multiple bidders

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