Great Deal Alert $675,000
Here is a property that could work very well for one of you. It is a bit scruffy and is on a busy street, however, the numbers work quite well. First of all, the tenants in the 3-bed, 2-bath are paying $1500 and I believe they could be bought out for around $10,000. When you renovate that unit, you should be able to get around $2500. The rear unit is set way back from the street and is a big 4-bed. I wouldn’t be shocked to see $4k/mo on that one. If my figures are right, this is how the numbers will look:
Assuming $675K purchase and $50K tenant re-lo fee and renovations, you will be netting $2800/mo positive cash flow after all monthly expenses. That means $33,600 annual net income. With $235,000 cash out of pocket between down payment, fixup costs and closing costs, you will be at a whopping 14.3% cash-on-cash return! Even if my figures on rents, etc., are a bit off, you will be no worse than 11% cash-on-cash return.
Let me know your thoughts. If you want to buy it, I will help you do it.