House #104 – Latest Rental

The summer flew by and things have been progressing.  We just closed on our latest rental.  It is a giant mess inside and outside. This deal was bought from a local wholesaler who found it via a mailer.  The same person owned it since 1984 and has since moved to Nevada and had it rented out.

The owner was in her 80’s and the wholesaler and I negotiated a carry back and it was pretty funny as she had a mortgage calculator in front of her as we discussed the terms.  She was a really tough negotiator.

I think this is the only 2-story rental house we own, because we buy mostly smaller houses and don’t want to limit our market we mostly stick to single story properties. At the end of the day the numbers work and we have some good financing so this should be a good rental.

 

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5 Responses to “ House #104 – Latest Rental ”

  1. Lin He says:

    What are the numbers?

  2. C-Money says:

    That thing is just too ugly. Wouldn’t touch it.

  3. Chuck H says:

    Steve,

    How does this one measure on the rent ratio of 1.5% that you said you like to target?

    This is the exact ratio that I target on my purchases as well. I can’t reach the 2% that the investors on biggerpockets are always striving for. Well, I could reach 3% if I bought class D stuff in trailer parks.

    Looks like just empty out, clean up, paint, some flooring and this one will be ready for the Sign in the yard. Have not seen the numbers, but I like it.. (other than the converted garage)

  4. Dan Lin says:

    looks like a winner Steve.

    in hear 80s?… How long was she willing to go?

    Just brought our first two story to keep as well. My though is that more sqft would fetch more in the future. However, plumbing and carpeted stairs are issues on the top of my list of concerns. Anything else to consider?

  5. Gotta love when you can get seller financing. Not a bad looking house. Doesn’t look like it needs much more than a cleaning and minor repairs.

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