Closing today on our 4th house this year!

[Sylvia B.]

Our goal for the year was 2 new SFRs. I guess we got a little carried away. ;-)

This one is a 3/1, 1200 sq ft and is almost turnkey. It needs $700 in electrical work (already quoted and scheduled) dishwasher, stove & hood. We're also adding a carport. Total improvements $2500. Here are the numbers:

$40,000 purchase price, cash

-$92. adjustments on HUD-1 (seller paid all closing costs)

$2500. improvements

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$42,408.00 total investment

$495/mo Rent

$200/yr Insurance 

$150/yr Taxes (may go up slightly because of recent renovations)

We're also setting aside $2500 for CapEx/repairs that will be needed within the first 2 years. There is some hideous vinyl in the kitchen & dining and the water heater is ancient, but the HVAC is brand new. We had someone ask to rent it less than 15 minutes after we struck the deal with the seller (Yes, news travels fast in a small town!) so we really don't expect much vacancy. It is the size and price point most in demand in my market.

[Sylvia B.]

@Kurt F.  I just might take @Joshua Dorkin up on his offer later, right now I have a lot going on in my personal life and can't think straight. 

Yes, taxes are pretty low here, but I do expect them to go up on that house. The guy we bought it from only paid about $12k for it last October, and I'm not sure he got a very good deal. ;-) For comparison, we pay $600/year on a house worth $100k & $400/year on one worth $75k.