Flipper/Rehabber · Houston, TX · Member since 2012 · 176 posts · 75 votes
Hello,
I have a lead that came today from La Porte , TX close to Houston, and before I go to meeting, I would like to know if this could be a deal or not to wholesale
Investor · Houston, TX · Member since 2013 · 314 posts · 146 votes
13y
I agree with Sharon,
La Porte is on the east side of metro Houston, not a lot of price appreciation to be expected out there.
I personally buy at $40-50 sq ft. or less and plan to put $10-20 sq ft. in based upon the year it was built for buy and hold rental.
There needs to be more meat on the bone for a serious investor knowing that a 1940's build is going to have fairly high maintenance/rehab costs, and only 1 bathroom.
Flipper/Rehabber · Houston, TX · Member since 2012 · 176 posts · 75 votes
13y
@Dawn Anastasi The seller remodeled the interior of the house, put new floors, new paint, new sink, new window units A/C. All remodeled has been done within the last 18 months, So we estimated that a new coat of paint and minor cosmetic repairs for a rental ready unit.
Seller got a job transfer and is taking a lost to sell the house quick
The house is 1159 sqft.
@Sharon Tzib Sharon that is a great question. There are comps for houses built in the 70s' around $70-$80 a sqft, but nothing sold recently for homes in the 1940's, so we estimated a $60 sqft.
The 3/2, and 2/2 rentals in the neighborhood are between $1000 to $1300, and the 2/1 are $850.
Rental Property Investor · Kansas City MO · Member since 2013 · 147 posts · 9 votes
13y
If all those numbers pan out it looks like a solid deal. Some people seem to shy away from homes that old. I'm surprised you can get rent that high with only one bathroom. Good luck if you decide to pursue it.
Real Estate Broker · Cypress, TX · Member since 2013 · 822 posts · 468 votes
13y
Ok, so basically you're selling it for FMV less your commission, correct? I think most investors are going to want more of a discount than that to take it off the seller's hands quickly, as-is, for all cash so she can be on her way to her new job, imho.
It definitely cash flows, especially if someone pays all cash (and even if they don't, but then again I assume your target buyer isn't getting a loan, or the seller may as well put it on the MLS and get the highest and best bid). Your target buyer is definitely a buy and hold landlord since there's no value add, which will limit your pool.
Personally, I'd try to get her down another $10K if she really wants to sell quick.
Investor · Houston, TX · Member since 2013 · 314 posts · 146 votes
13y
I agree with Sharon,
La Porte is on the east side of metro Houston, not a lot of price appreciation to be expected out there.
I personally buy at $40-50 sq ft. or less and plan to put $10-20 sq ft. in based upon the year it was built for buy and hold rental.
There needs to be more meat on the bone for a serious investor knowing that a 1940's build is going to have fairly high maintenance/rehab costs, and only 1 bathroom.
I agree with Sharon,
La Porte is on the east side of metro Houston, not a lot of price appreciation to be expected out there.
I personally buy at $40-50 sq ft. or less and plan to put $10-20 sq ft. in based upon the year it was built for buy and hold rental.
There needs to be more meat on the bone for a serious investor knowing that a 1940's build is going to have fairly high maintenance/rehab costs, and only 1 bathroom.
Licensed Real Estate Broker & Investor · Houston, TX · Member since 2012 · 521 posts · 104 votes
13y
@Hector Perez Hey Hector, this seems like a decent deal for a cash investor looking to expand their rental portfolio. Would typically expect a higher return in an area like La Porte that's not quite as desirable as some others.
Happy to give you an honest opinion if you shoot me a PM w/ the address...