New Real Estate Deal Description

[Travis Soileau]

As usual I will post my deal that I am working on.

I am purchasing a house in a below average neighborhood. It will be a 10,000.00 dollar sale cash. The total will cost me 10410.00 with closing cost. They already have an established renter. He is blind and deaf. He gets a check from the government for disability. He is paying 325.00 rent. It seems to be a good deal. I will get my return on investment in about 4 years.

The second deal I am working on is a house that has 5 bedrooms and 4 bathrooms. I will convert it into 4 apartments. From the start I will setup 3 apartments at the bottom and then as time goes I will add another on the second floor.

I believe I can get 350.00 a unit per month.

I put a bid for 25000 and they took it. I will go through a bank and have to put 5000 down. I have closing cost and insurance and inspections to do. I will keep everyone posted of fees and outcome.

I believe it should bring income of 350 x 3 = 1050.00. The expenses will be a about 600.00 with a cashflow of 400. I think it will be a good deal considering I will still have another apartment to add in the next 3-6 months.

[Steve Babiak]

Originally posted by Travis Soileau:

...

The second deal I am working on is a house that has 5 bedrooms and 4 bathrooms. I will convert it into 4 apartments. From the start I will setup 3 apartments at the bottom and then as time goes I will add another on the second floor.

...

Does the zoning on this single family property support your conversion into 4 units, or will you have to go through some hoops to get variances?