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Updated about 6 years ago,
Really excited about this deal, thoughts?
Hey BP, about to close on an awesome deal (or at least I think so), would love to hear your feedback! Found a single family home (for sale by owner) which has a long term tenant staying on property upon closing. Here are the details:
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Purchase price: $66k ARV: $110k Mortgage: $487 (5.25%, 20% down, 30 years) Gross monthly rent: $850 Net cash flow: $363/month
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The tenant wants to stay for "as long I'll let him stay". The home could use a refresh like new flooring and paint, but is structurally sound and has a new roof and HVAC system. However, if I do the requested refresh, I feel like I should raise the rent by at least $25-50. Any thoughts on this? I typically hate to raise rent upon acquisition on existing tenants.