Property # 14 Debrief

Property # 14 Debrief – Boring but sexy ( so far)

This one is so far one of my quite one and I like it. I hope it can continue to be like this later on. This is another typical turnkey deal with income from day one from the wholesaler. Purchased price is $80,000 but rent is only 900$. I think this is the main reason I have no competition when I bought this unit. However, I do know this area can rent for $1250. I decided to bite the bullet and hold this property for a year until the lease expired so that I can raise the rent. The wholesaler charged me 10 grands for the assignment fee on this one. I can probably negotiate to cut down the assignment fee but oh well. I will try next time. I brought a partner on this one as well. Same old 50/50 split

Financing: 25% down with Commercial Mortgage at 4.8%

Rent: $900 ($1250 as of 2015)

ARV $110,000

What is happening to this property?

2014 update: not much is happening. This is quite one. The tenant paid late a couple times but that’s about it

2015 update: her lease expired and I raised the rent back to $1100 for her to stay  which is still a good deal but she didn’t take the offer and left. I did a light rehab to the unit and was able to lease it again quickly at $1250 pretty quickly. This house is in a good school district

SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC
SONY DSC

4 thoughts on “Property # 14 Debrief

  1. Does whole seller charge assignment fee on every deal? when would they do it?
    Do you then have to add that to your cost when you calculate cash flow?

  2. HI Iman,
    For sure they charge assignment on every deal. that’s how they make their money. They already added the fee when they sell it to you. This one for example, they bought it for 70k and turn around and assigned it to me for 80k. they took 10k profit

  3. Great read on the market Huy. I liked that you knew you could raise the rent within a year after the lease expires and get some more cashflow from this. Were you able to neg the wholesalers down on their fees in your newer deals ?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s