Rental Under Contract!!!

[Dominick Johnson]

After searching the market basically every day this year, direct marketing attempts with no results, and writing multiple offers that were not accepted, and a cash cow 5 property seller financing opportunity that the seller backed out on, I am under contract on an investment! Our search perimeters are pretty tight for SFH in the 8 mile radius we invest in, so that on top of interest rates and lack of inventory has made for an unproductive year. This one checks all the boxes, is in excellent shape, and I already have a long term tenant lined up to move in right after closing. My wife is the realtor, so she also gets 2.7% commission back on our purchase. Here are the numbers:

3 bed, 1.5 bath - 2-story, 1152sf

list price: $180k, purchase price: escalated to $200k (comps at $215k+ in same neighborhood)

downpayment (20%): 40k

closing costs: 6,500

repairs: 3,500

mortgage/insur/tax/hoa: 1,335

Rent: 1,775 + 50 pet fee

Cashflow: 490* (repairs/vacancy/cap ex fully funded for year 1 out of purchase commission, then use profits when needed for year 2+)

CoCr: 11.76%