Hello,
I am looking to purchase my 4th property and would love some seasoned eyeballs or experience dealing with difficult tenants.
The details: Off market
$170,000 smaller house with 875 sqft, 2 bed 1 bath
$850/mo in current rents with tenant paying all utilities
property tax of $100 month
20% down payment - 34K. Seller financing with 5% interest and any term length we choose (e.g. 15, 20, 25 year etc). No pre-payment penalty so can refi after BRRR. She is an awesome lady selling parts of her portfolio every year to retire, we could also pick up other deals from her in the future.
25-30K in remodel. ARV of 245K and rents of 1,400++. Very hot rental and housing market, likely able to get 1,600.
Great annual return due to buying below market of 195K and rehabbing to add value. at 1,400 in rents = 6.9% purchase cap rate, 7% cash on cash ROI and $72K in equity after rehab, so we could get our rehab budget out. If 1,600 in rents = 12% cash on cash ROI.
The issue: tenant is an elderly man, a smoker with a dog and doesn't want to move. Would consider cash for keys or paying him to move. Will meet him this Sunday. Any suggestions?
Thanks!
