Rental Property #5

I think this is number 5. I’m not sure. This is a good problem to have. you don’t remember the order of the houses you bought. This is the kind of problem you want to have and I love it!

The story to buy this one is actually pretty cool. It was in a typical working day and i was dozing off and on after lunch. All of the sudden an email alert from the MLS hit me. bank owned house for sale with an ARV of 160k with minimal repair. I immediately ask my boss to go home early that day and rush to see the house. Man! It was beautiful. But i have a problem I am broke! I am super broke! I just purchased my primary resident and i am currently short on cash. However, knew for sure that this is one of a kind deal and if i don’t get this, somebody else will. I went back to my car and start calling any people i know that have money.

After a couple hours, I ended up with 4 people on the deal and we will purchase it with cash. We will split the deal by 4. one of the investor agreed to lend me the money for my portion. I quickly get the property contracted.

The deal took almost 9 months to close since it’s a short sale and the bank we deal with suck. The listing agent is not a good one either. Anyhow, we managed to close the deal. I quickly repair the property and then leased it out for $1600 !

Renovation cost: $5,000

Financing: Cash.

Rent: $1600 ($1650 as of 2015)

What is happening to the property now?

The property just need new appliances and a nice clean up. I purchased all nice and brand new stainless steel appliances for my tenants (I know i am probably the only guy on earth who do this) The property quickly rented for $1600 and the tenants still stay with me up until today.

2015 update: They are still with me. The property appreciated all the way to $180,000 so all of us almost doubled our money in term of equity. However, property tax is killing the cash flow right now. Since my tenants are so nice and i don’t feel like giving them a hard time. I just increased it by 50 bucks to $1650 to keep them happy. I really hope that they would stick around with me for a long time

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