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Updated almost 9 years ago, 03/02/2016
Buying 3 houses...how do they sound?
I'm buying 3 turnkey houses from another investor and closing in a week or two.
All 3 are tenant occupied, needs ZERO work, in great shape. Nothing major is needed in the near future like bad roof, AC, etc. so I should be walking into a good situation. They all have ceramic tile in all rooms except bedrooms. Kitchens were all updated.
Tenants have all been vetted and paying their rents. Using the 50% rule, I've come up with these numbers
House #1:
Purchase: $57k, Rent: $800, CAP Rate: 8.38%; very long-term elderly tenants
House #2:
Purchase: $43k, Rent: $800, CAP Rate: 11.09%; tenants been there 1.5 years (roommates with a double security deposit on hold)
House #3:
Purchase: $60k, Rent: $900, CAP Rate: 8.96%; tenants been there 4 years
Just wanted to get your thoughts before I close. I feel good about them