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.
May be buying another house