The simple answer is that it was the last property that I owned in that community. I had many other properties there and the surrounding areas but over the years have sold all the other properties that I owned.

Some examples were I bought a house for $67,000, rented it then sold it for $120,000. Another bought for $61,000, then rented and sold for $111,000. Another bought for $60,500 rented then sold for $115,000, and also bought one for finally bought one for $52,000, rented then sold for $122,000. So this town has been good to me. Made some rental income and then sold the properties for about twice what I paid for them. Coincidentally all were sold to owner occupants.

So the last one in this areas was actually one of the first in the area bought. @Ben Leybovich might even call it a $30,000 pig. But it was an anomaly, an outlier. It was in an area of 100 year old houses, this one was no younger, perhaps older. It was built in a different era, a different time and a different culture. When this house was built most people didn't have cars and there were no electronics, and probably few phones. People walked to work or took the bus. There was a large employer in town and most of the people worked there. It was a company town. Today the company is still there but a shell of it former self, in an industry that time has forgotten.

Today most of the residents are renters in 1900 properties some of which have not been updated to 2015 standards. But this house is an outlier. The previous owner had extensively renovated the house with new siding, new windows, all new drywall, new plumbing, heating and electric. they installed 2 new full baths and a new kitchen, for it was their home, their personal residence as owner occupants with pride of ownership. After they outgrew the house, they moved on and sold house for $56,000. The new owners didn't have the same pride of ownership and accomplishment and ended up losing the house in foreclosure. I bought the property for $32,000. I knew when I bought it that it was a cash flow play and not an appreciation play. It needed cleaning and painting and little else. I rented it and the last tenant was paying $950 plus utilities and stayed for 5 years. So a $32,000 property as generating $11,400 a year gross rent. Expenses were low, tenants paid utilities, mowed the lawn, shoveled the snow and stayed for 5 years, meaning no repainting, etc. and no vacancy.

I decided to sell, because it was away from other rentals that I owned and managed. I knew that the neighborhood would dictate the price and that I'd get a lower price due to the neighborhood. In another location, and another time like 2007/2008 I'd have gotten a much higher price. But I can't change the location or the year. There were competing offers from both investors and owner occupants. I ended up selling to an O/O for $64,000. That buyer didn't care about the 15% Cap Rate, though the investors did. Oh sure there were investors that looked at the address and decided that they didn't to buy in that area. And all I can say is the same thing now as when I bought it. Its probably not going to appreciate much if any; the neighborhood is primarily renters living in residences built in the 1800s or 1900s. But if you want the cash flow and are willing to forego the appreciation, this could be a good 15% Cap Rate for you. (if it wasn't already sold!)

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