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Updated almost 10 years ago,

User Stats

59
Posts
19
Votes
Sheryl Gurvey
Pro Member
  • Rental Property Investor
  • Decatur, GA
19
Votes |
59
Posts

2 part rental analysis question

Sheryl Gurvey
Pro Member
  • Rental Property Investor
  • Decatur, GA
Posted

i am looking at a property with tenant in place.  Tenant is happy and would like to stay with the house as-is.  If it were vacant I would put around $10k into it right away to cure some issues (mainly cosmetic like flooring, paint, add dishwasher, refinish deck and maybe new tub.  Long term capex I see is the roof in 3-5 years, but still good now, and new windows someday.  Systems are 7 years old.  Brick exterior.

First question is do I consider as-is with happy tenant or analyze with future repairs?  Rent would be 900 with upgrades.  How would I do repairs anyway with tenant in there?

Here are the numbers but please keep in mind that in would NOT pay the asking price.  I would like opinions on what price would make this a good deal.  Seller is negotiable.

Asking price 69,900

Rent 820 (but tenant gets 25 discount for paying early, so 795 because they do)

Vacancy 40

Capex 48

Mgt 80

Taxes 98

Ins 60

Repairs 64

PI 300

CF 106

Meets 1.1% rule

7.72 COC

C to C+ neighborhood with continual improvement.

Thanks!

  • Sheryl Gurvey
  • Loading replies...