2 bedroom brick ranch $24,900
Thought it might be helpful to record my notes in my blog about some of the properties I visit on the weekend. One thing I like to do is keep an eye out on the inventory in the area. Another thing is to keep an eye out on the rental amounts in the area as well.
So today I visited a nice little 2 bedroom ranch home priced at $24,900.
Positives:
- Really nice sized at 1,233 square feet. Felt spacious. Especially since that didn't include the partially finished basement space.
- All brick completely around. The brick was in nice shape and it had stone around part of the lower front.
- The rooms seemed to all be in pretty decent shape as far as walls and so forth were concerned.
- The 2 car detached garage was also all brick.
- The yard was fully fenced in and it was a decent size.
- The roof on both the house and garage were decent.
- The water heater was from March 2012.
- The kitchen included a stainless steel dishwasher.
- The main bathroom on the upper level was HUGE. You could fit maybe 3 of the bathroom I have in my own house in this one. Two sinks, a huge tub, and the shower surround was made with marble tiles.
Negatives:
- Furnace ancient, would need to be replaced.
- Needed painting in the interior and a little patching on the walls, nothing major.
- Electric was fuses so ideally would change that out to circuit breakers.
- Someone started adding a full bath in the lower and there was new pex piping, but it wasn't finished, so there would be a cost to finish that off. (But then that means that there's an entirely full bath in the basement rec room area, so that's kind of a positive.)
- It has a fireplace. I don't like the idea of tenants starting fires in my house.
- The carpeting in the bedrooms was really dirty and would need to either come out or be replaced. (Not sure if there were hardwoods underneath.)
Overall I think that it would probably cost about $8,000 - $10,000 to renovate to get rent-ready. Since it's only 2 bedrooms, I imagine that the rent would be about $825 at the high end.
Property taxes: $2,091/year
Overall, I really liked the property, I think it has good potential to be a rental and make decent cash flow.
Comments (7)
Roy, I've seen when you post a comment, it doesn't post immediately, so sometimes people will click the "Post Comment" button again and wind up with multiple posts. Patience, grasshopper! I can look at one property and know that it would be a good deal. I can look at 10 and rule them out. A good deal is a good deal, and it can be the first one you look at or the 100th one you look at. If a property meets my criteria, then I would buy it, plain and simple.
Dawn Anastasi, over 10 years ago
Dawn: Billy really wants to know how many house you walk through before buying one? :)
Roy N., over 10 years ago
How many places do you look at before making a decision?
Billy Hills, over 10 years ago
How many places do you look at before making a decision?
Billy Hills, over 10 years ago
How many places do you look at before making a decision?
Billy Hills, over 10 years ago
Unless there was major renovation, no. I don't do major renovation to rentals. 2 bedrooms are not all that bad, there is a market for them. Not as much as a 3 bedroom, but the demand is still there.
Dawn Anastasi, over 10 years ago
Dawn: Any potential of a third bedroom? In my market we want our houses to be 3-4 bdrm. A 2-bdrm house is at a disadvantage to an apartment (I have 5 2-story, 2-bdrm apartments that range from 975 to 1300 sq ft in size) as does not fetch enough additional rent to justify a separate building for 2-bdrms. Of course, in our area, that house would probably be listed for 100 -120K.
Roy N., over 10 years ago