CHARMING Off Market, Complete Remodel, $850 Rents, Sect 8 Tenant

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CHARMING Off Market, Complete Remodel, $850 Rents, Sect 8 Tenant

Chris Ramos
Flipper/Rehabber · South Jordan, UT · Member since 2016 · 142 posts · 37 votes

CHECK OUT THIS REMODEL, COMPLETE TURN KEY SERVICE PROVIDED WITH TENANT GUARANTEE !!

    PROPERTY DETAILS

    PROPERTY DETAILS

    Purchase Price: $60,000.00

    Address: 27035 New York St, Inkster, MI 48141

    Bed: 2

    Bath 1.00

    Living Area (approx sq. ft.): 1000

    Parking: 2 CAR DETACHED GARAGE

    Year Built: 1950

    Lot Size (approx sq. ft.): 6534

    AREA INFO:

    Inkster City is on the rise and we are excited to be a part of it!

    Our company is one of just a few approved companies that is working directly with the city, mayor and building department in an effort to improve the city one block at a time. We're literally changing neighborhoods!

    Inkster is a small affordable residential community surrounded by opportunity. Sitting just west of Detroit and only a few miles from the International Airport. With the bustling cities of Dearborne Heights, Taylor, Westland and Romulas surrounding it.

    Comprised of mostly 2 and 3 bedroom homes Inkster is undergoing a transformation of youth. Young families are finding affordability with ease of access to downtown Detroit, Ford Manufacturing Facility and Detroit Wayne Metro Airport with a quiet suburban lifestyle. In 2016 the planning phase to connect the University of Michigan to Wayne County Airport and Downtown Detroit began. This project will include a light rail and main station in Inkster City drawing more families and development to the city. This is sure to cause property values to increase in the near future.

    REMODEL REMARKS:

    SECTION 8 TENANT

    COMPLETELY REMODELED WITH NEW:

    • FURNACE
    • HOT WATER HEATER
    • CARPET THROUGHOUT
    • KITCHEN CABINETS, SINK, AND COUNTERTOP
    • TILE KITCHEN FLOORING
    • BATHROOM VANITY, MIRROR, AND TOILET
    • TILE BATHROOM FLOORING
    • PLUMBING AND PLUMBING FIXTURES
    • ELECTRICAL PANEL AND ELECTRICAL FIXTURES
    • INTERIOR AND EXTERIOR LIGHTING
    • VINYL WINDOWS AND BLINDS
    • INTERIOR TWO-TONE PAINT
    • DOORS AND HARDWARE

    FULL BASEMENT WITH GLASS BLOCK WINDOWS

    CASH FLOW ANALYSIS

    850.00 Monthly Rent

    $10,200.00 Gross Rents
    -$1,020.00 ((10%)) Property Management Fee
    -$1,441.00 Taxes
    -$ 0.00 Utilities
    -$510.00 Minus Vacancy (5%)
    -$1,020.00 Minus Repairs, Maintenance, City Fees, Etc. (10%)
    -$306.00 Minus Leasing Fee (3%)
    -$0.00 Lawn Care
    -$500.00 Insurance

    $5,403.00 Net Rents divided by

    $60,000.00 Purchase Price equals

    9.01% ROI

    COMPS

    Property AddressPurchase PriceDate SoldBedsBaths
    27053 Norfolk, Inkster MI$66,00001/25/201821
    26641 New York, Inkster MI$65,78003/14/201821
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    7 Replies

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    • Bill Zarzecki
      Westland, MI · Member since 2018 · 29 posts · 6 votes
      8y

      Is this a cash only deal or can it be financed? What is the 3% leasing fee?

      0Reply
    • Jabari Long
      Real Estate Broker · Detroit, MI · Member since 2014 · 384 posts · 149 votes
      8y

      Chris what does the Tenant Guarantee mean?

      0Reply
    • Leo Koonan
      Rental Property Investor · Seattle, WA · Member since 2018 · 230 posts · 77 votes
      8y
      Originally posted by @Bill Zarzecki:

      Is this a cash only deal or can it be financed? What is the 3% leasing fee?

       @bill   its when the PM screens vets and puts your renters in. 

      0Reply
    • Bill Zarzecki
      Westland, MI · Member since 2018 · 29 posts · 6 votes
      8y

      ok that makes sense thank you. 

      0Reply
    • Chris Ramos
      OP
      Flipper/Rehabber · South Jordan, UT · Member since 2016 · 142 posts · 37 votes
      8y

      @Jabari Long

      Howdy Jabari.

      Tenant Guarantee-

      If the Property Manager places the tenant and the tenant needs to be evicted or leaves within the first 6 months then the PM will replace the tenant at no cost to the owner. This costs the PM a minimum of half of a months rent which they have to pay their leasing agents. I see you're from the area and I'm sure you know working the C and C+ areas are challenging. I've never seen any other PM's offering this in this rental market, I think it says a lot about the PM.

      @Bill Zarzecki 

      Howdy Bill

      Financing is an option, there are local lenders that can do conventional loans with 20% down, values have been coming up and I've seen properties appraise at the prices I'm selling them for. Feel free to call me to discuss in detail if you like.

      3% Leasing Fee-

      We put a 3% leasing fee in the annual expenses because reality is such that your gong to have to replace a tenant on average every two or three years and the cost of this is typically one months rent which is 8.5% of the gross rent. I just wanted to show all of the Real expenses and then have them averaged out over the length of time that they occur. 

      My Cash Flow Analysis that I use for the ROI is a realistic approach that doesn't show you the best case scenario, it's more of a worse case scenario with hope to do better.

      I like to bracket my deals (worse to best case) and if I'm good with a worse case then I do the deal. 

      Hope this helps.

      @Jabari Long

      0Reply
    • Jabari Long
      Real Estate Broker · Detroit, MI · Member since 2014 · 384 posts · 149 votes
      8y

      @Chris Ramos what PM do you use

      0Reply
    • Chris Ramos
      OP
      Flipper/Rehabber · South Jordan, UT · Member since 2016 · 142 posts · 37 votes
      8y

      @Jabari Long

      It's Priority One Property Management.

      Here's a link -

      www.priorityonepm.com

      0Reply
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