TX Investment- taking advantage of a mother in law unit

[Nir Sheinbein]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Blue Mound.

Purchase price: $86,000
Cash invested: $145,000

In August 2018 we purchased a 3/1 1077 sqft house for a total cost of $86K.  
 
We had a complete renovation that brought the house up to 4/2 and 1,700 sqft. We added a  mother in law unit that can be rented separately. Renovations were complete in Jan 2019 

What was the outcome?

Contractors: $28,388.03  Insurance: $645.65  Meals: $868.39  Job Supplies: $32,604.29  Travel: $70.00  Utilities:​ $381.05  Total cost of renovation: $62,957.41 Total Money spent on project: $148,957  Estimated House Value: ​$180K  Upside Equity: ​$31,043 

Rent 
Income:  
● Main house: $1,400   ● ‘Mother in law’ unit: $900   ● Shed rent: $100   ● Total per month: $2,400  ● Total per year: $28,800 
Expenses: 
● Property tax: $2,450  ● Insurance: $1,200  ● Repaires: $2,400  ● Management Fee: 8%