Closed on 4th rental today

[Account Closed]

Today I closed on my 4th rental. This property is on the same street as another one I own. The property was listed for 34k and we ended up settling on 24k.

The property is approximately 800 sqft, 2 beds, 1 bath, hardwood floors, vinyl siding, newer windows, basement, no garage, and in a C+/B- neighborhood. The property needs paint throughout, some siding and gutter repair, insulation in attic, minor window trim repairs, flooring in one bedroom, yard clean up, basement clean up and painting.

Here are the breakdown on the numbers:

purchase price: 24k

closing costs: 1k

Repairs: 5k

Total Investment: 30k

Rent: $800/mo

Property Tax: $1,012

Insurance: $425

PM: $960 (10%)

Maint./Cap Ex: $960 (10%)

Vacancy: $768 (8%)

Total Expenses: $4,125

NOI: $5,475

COC Return: 18.25% or 16% coc return using 50% rule..

Its been rare to find properties this discounted around my area. The ARV on this house is probably around 50k. This property was owned by a landlord who was tired of renting it and was having a lot of issues with tenants. We plan to fix it up and turn it over to our property management company. Hoping we don't run into any surprises and the repairs stay at or below 5k.

[Matt Long]

Nicely done Nick.  Don't find those types here in San Diego.