Am I missing anything?

[Zach Gring]

https://www.biggerpockets.com/...

asking price is 164,000 3/1 sfr buy and hold

on market he could probably get 175-185 without any struggle.

rent is currently 1700

it has potential to add a living space, bedroom, and bathroom in the basement bringing rents up to 1850-2300

Its on the boarder to the next town over and has an excellent school district.

Is 155k seller pays closing costs a solid offer? its off market I'm the only one looking at it.

thank you!

[Marcus Auerbach]

@Zach Gring Joe is right. We typically finish the basement on a SF rehab and add a 2nd (large) bathroom if there is only one in the house. We only do this because we have all the trades on site anyway and can include it for a relativley good price, however I don't think I can get more than $50 extra in rent. This is in the Milwaukee suburbs, similar property value and rents as you describe. 

So really terrible ROI on a finished basement if you look at cashflow; the reason we still do it because we have extremely low turn over; tenants appreciate the extra living space especially in the winter and even more with Covid. My true turn over cost between lost rent and some work is on average 5k. So, by avoiding frequent turn over we are making our money back that way, but there is no way you can justify the cost through a rent increase.