There are no additional issues with the house, no roof damage, no major repairs. I checked the zoning and it is R4. No problems as far as is having to be zoned or have a permit as a "boarding house". My investor bought it from another fellow investor with tenants already placed from the last 6-12 months. So yes, it has shown some stability as far as cashflow goes. The tenant setup is nothing like a facility for a specific reason, just three tenants rooming with each other and renting out a room for $500 a month. Yes it would be a little bit more work to ask rent from 3 people instead of one, but these tenants want to stay here and have been for the past year. All 3 have contracts and need to give a month notice before plans of vacating the property.
As far as property management go, you can get a decent property management company for $150-$200/month near this area and don't have to worry about the headache yourself. Property mgt can also assist in replacing a tenant quite quickly. Comps are running from 4k (obviously a complete rehab) to 71K in immediate areas. Look at it as a cashflow property pure and simple. It's not for all investors, but if you are looking for a property that is owned free and clear, inexpensive, doesn't need work and is cashflowing this is a good investment for you. Returns are at 25% for the $1500 rent and even if you cut it at $700 a month for one tenant (which is the average rental in this area), you would still be getting 20%.
