Now this one I have to fight for. It was another afternoon at work and the wholesaler email hit my inbox. The number is not great but it’s not bad either. With no deal in 2015 so far I decided to bite on this one. I took off early from work to go see it, liked it, and decided to buy it before other people show up to see it.
Repair:$15,000 (it was 10,000 until the AC system blew up)
Financing: 25% down with commercial mortgage at 4.8%
What is happening to this property?
2015 update: Rehab is pretty straight forward. I donâ€™t know why I decided to put granite counter top in the kitchen. But I gotta tell you I like it. My philosophy is that I will rehab a house so that if decided to stay here, I will have no problem doing so. Lot of landlords argue that you only need to put in the basic stuff for rental. Any fancy item wonâ€™t make the rent go any higher and therefore will basically reduce your ROI. I kinda disagree with that. For me, If you put in your sweat and also your heart to your project and make it look nice, your tenants can feel it. It will also increase the change of having a good and long term tenants. Itâ€™s a bet Iâ€™m willing to do because I do want my tenants to feel that I am a responsible landlord and I do want to give them the best stuff within my reach
One funny thing happened in this property though: My newly planted flowers on the front yard got stolen! I was so frustrated since my yard man bought them on sale and they are beautiful!! Oh well. The house still rent for $1250 without the flower so itâ€™s no problem with me.
2015 update #2: couple weeks after the tenants moved in. The AC system blew off. I was hoping it can survive for at least a year or two but no luck. I ended up replacing the whole system for $4300, both outside and inside unit.
Well, the house neither flood or have water damage during the our history flooding. However, there was a drunk driver ran straight into the house and destroy the wall. Luckily, I got a good contractor and the insurance company cut me a check to cover the repair. Another story of landlord life.