$10k for a Cashflow rental Single Family in Memphis, TN (30%+ returns)

[Sean Katona]

Hello BP, I've been enjoying the podcasts and done lots of reading over the last few months, but this is one of my first posts. Quick intro from me: I have 2 cashflow rental properties in Dallas, TX - a duplex in Seattle (where I'm from), and I'm flipping 8 properties now in Southern California. I do a lot of marketing to homeowners via yellow letters, bandit signs, and online advertising.

Last week I was contacted from my website (SeanBuysHomes.com) from a homeowner in Memphis, TN looking for a quick cash sale. (Not exactly sure why I popped up because I go for Los Angeles / Orange County keywords and geotargeting, but nevertheless, I have his property under contract currently.

It looks like a great return as a buy&hold rental if you are a landlord or rehabber. I'm looking to make a nominal assignment/wholesale fee for tying this up (included in $10k purchase price). I've highlighted the deal below, and I have a property overview document drawn up and can send you a preliminary title report if you're interested.

Thanks,
Sean

Single Family Home: Turnkey Cash flow Rental Property

Background

• Current owner (landlord) needs to liquidate this property quickly to free up cash for his other properties.
• Deal Source: Seller called me directly from my website (SeanBuysHomes.com)

Overview

·$35,000 estimated value

·$10,000 cash purchase price (includes assignment/finders fee)

• Current rent is $450/month, tenant pays utilities.
• 768 Sq Ft on a 4,800 Sq Ft lot, 2 bedroom, 1 bath built in 1945
• $13.02 cost per sq/ft

·$3-5k potential maintenance costs

·http://www.zillow.com/homedetails/2112-Curry-Ave-Memphis-TN-38108/42157327_zpid/

·APN: 041-052- - -00046

• Tenant in good financial standing - prepaid 4 months of rent (this summer)
• Tenant works for school system

• Property Notes
• Kitchen floor has a bow in it.
• Property has new central air/heat. Needs condenser for A/C.
• Small leak in the laundry room ceiling
• Owner and tenant will work with me/buy to schedule time for a walkthrough as needed