On Friday February 14th, 2014 I closed on rental property number 9! I took a video of the home today and you can see it right here; Video of rental property number 9. I bought the home for $134,900 and it should rent for at least $1,300 a month. The home needs very little work and will be a great rental.
▼ Continue Reading Below
For more information on my investing strategy, please check out my complete guide to investing in long-term rentals.
Also for more information on how to buy the best rentals which will make the most money, check out my book: Build a Rental Property Empire: The no-nonsense book on finding deals, financing the right way, and managing wisely. The book is 374 pages long, comes in paperback or as an eBook and is an Amazon best seller.
How much did I pay for rental property number 9 and why?
Rental property number nine was listed for $134,900, and I noticed the home within hours of it being listed on the MLS. The most money I had ever previously paid for a rental property was $115,000 for rental property number 6. The reason I was interested in rental property number 9 at a much higher price was that our market has taken off! It has been very difficult finding anything close to my buying criteria. I have been forced to look at higher priced homes and hope the sellers will negotiate more. When I saw this home in person I was very pleasantly surprised by the condition of the home.
Details on rental property number 9
Rental property number 9 is a ranch style home with 4 bedrooms 2 baths and a 2 car attached garage. The great part about the home is it has new windows, nice hardwood floors, a newer kitchen with all appliances, newer bathrooms and very little work needed. Most of my homes require at least $10,000 in repairs and many much more than that. This home should need less than $2,000 in work at the most and be ready to rent. The home has a very open floor plan and one of the bedrooms upstairs is actually two bedrooms that were converted into one.
What will rental property number 9 rent for?
Rental property number 9 should rent for $1,300, although our market is still incredibly tight for rentals. I have heard of people getting crazy amounts for rentals in our area, but I am not getting my hopes up. There is absolutely nothing for rent or for sale in our area, and that has been pushing prices up for both rentals and sales.
Did I still get a good deal on rental property number 9?
I think I still got a great deal on this home, even though it was priced more and I bought it for more than my other rental properties. In the first day they had three offers on the home after I had submitted my offer. I initially offered around $118,000 with the seller paying $2,000 in closing costs. After hearing of the multiple offers I raised my offer to $130,000 and decided not to ask for any seller concessions. The seller ended up countering me at $133,000 and I accepted!
Why did I pay so much more for this rental property?
This home is still a good deal even though I paid more than I have for any other rental. The rents may be similar to my other rental properties, but this home needs virtually no repairs. Having to do minimal repairs gives me a couple of huge advantages over purchasing a home with repairs.
- I don’t have to wait for the repairs to be completed! I have 4 fix and flips and rental property number 8 still being worked on by multiple contractors. Saving time is saving money!
- Even though the home cost more money I am putting less cash into the home, because I pay less money in repairs.
- This home was still purchased below market value. I estimate I could sell it for $150,000 or more with very minimal repairs.
Rental property number 9 gets me closer to 100 properties and I will have news soon on number 10!
We asked $1,400 for rental number 9, and this home also had immediate response and applications submitted. We had to go through a couple of applications on this home as well because the first tenants we decided on flaked out. We did in fact rent this home for $1,400 a month, which is more than I anticipated!