I purchased rental property number 10 on March 19! I am a little late posting the details on it because my wife and I were in Mexico at the time. It was such a wonderful vacation without the kids that I forgot to write a post about the purchase! Rental property number 10 is much different from my other rental properties; smaller, older and in a different town. Here is the video of Rental property number 10. The video was taken after the repairs have been complete because I did not get a chance to take a before video on this property.
For more information on my rental properties and investing strategy check out my complete guide to purchasing long-term rental properties.
The details on rental property number 10
Rental property number 10 was built in 1956 and is a 3 bedroom 2 bathroom house with a one car detached garage. This home is a little older and smaller than most of my rental properties. It was cheap at only $99,917 and in decent shape.
The kitchen was updated, has nice flooring and only needed a bit of work in a bathroom and some drywall installed. It was less than $3,000 to get the property ready to rent. Here is an article with much more information on how I repair my rentals.
How I bought rental property 10 and what is it worth?
Rental property number 10 was on the MLS and I made an offer immediately on the home. The home was listed for $99,917 on a Friday afternoon, I went and saw the home and made an offer of $95,000 with seller paying $2,000 in closing costs. I received a counter on Saturday that was $99,917 with the seller paying $2,000 in closing costs. I accepted the counter offer since this was a great deal and the home needed little work.
I feel this home is worth at least $130,000 with the little repairs I made on it. I have no idea why they listed it so low, but it was an investor selling it. He may have wanted to get rid of it quickly. For more information on how I get such great deals check out my book: How to Buy Real Estate Below Market Value, which is available as a 116 page E book on Amazon or as a PDF here.
Safety issue on rental property 10
This property had an interesting feature when I bought it. There were two ponds in the front yard connected by a concrete stream bed. I like ponds, but not in my rentals and certainly not in the front yard. The last thing I want is a little kid falling into the pond, so I had the ponds and concrete all taken out.
Where is rental property number 10?
Rental property number 10 is in a small town called Kersey about 7 miles East of Greeley. All my other rentals have been in Greeley or the adjoining town of Evans. I chose Kersey because our area has a huge oil boom right now. Kersey is the closest town to the oil and gas boom, and I feel has great demand for rentals.
What will rental property number 10 rent for?
This is the big question! There are no rental listings in the entire town right now. There was a one bedroom listed for $600 last month and a studio listed for $700 earlier this month. Both of those properties rented and now there are no listings. I am going to ask $1,250 and see what type of response I get. Hopefully we will get it rented soon! Here is more information on how to determine market rents.
The loan on rental property 10
I was able to get a loan on this property through my portfolio lender. I used another 5/30 year ARM with a 4.5 interest rate and 20% down. My payment is $476.02 a month including taxes and insurance on the home. To figure the cash flow, check out my cash flow calculator here. The best part is since I am using a portfolio lender they will keep lending to me on more than ten properties.
I am getting closer to my goal of purchasing 100 rental properties by January by 2023. I have a lead on rental property number 11, which is not an MLS listing. I will continue to post updates on Facebook on my flips and rental properties. Be sure to like our page for a chance to win the Complete Blueprint to Successful Real Estate Investing!
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.