Rental Property #10 Debrief

The cash purchase series continue.. i got a little bit of the story to tell on this one. It was on a Sunday night and i am bored. So i pulled up the MLS and started…emailing trying to buy the house for one of my family member. This one guy he replied to me right away. The house is listed for 132,000 with tenants already in the house. i went see the house and have a chance to greet the tenants. they are good people. I went back work on the offer. after a little back and forth, we contracted the house at $123,000. Next time i would be a little bit more aggressive after the inspection period. I remember have the inspection done and i asked for now thing…The listing agent surprisingly asked me..really? You don’t need anything?

Renovation cost: $0 

Cash flow from day 1: $1400

Financing: Cash

What is happening to this property?

The AC recently broke down so i have to replace it for $5000 total. Other than this major repair. this is a steady investment so far. I am still managing the property as of 2015. I do not want to raise the rent but the hcad does not give me a break this year. I might have to kindly raise the rent by 50 bucks just to break even with last year. houses in this neighborhood appreciated to $140,000.

2016 update:

the tenant lost the job because of the oil down turn and moved out. i quickly clean it up and lease out for $1450.

 

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