Putting my offer in soon on my 3rd rental. Here are the figures.
ARV - Roughly $50k.
List Price - $19k, offer price $9k (Willing to pay as much as $12k)
Rehab needed around $12k.
Large 4 bedroom house that should rent section 8 for around $750-800.
Will be my first section 8 home, a little nervous about that. But a killer deal cashflow wise.
What do you think?
I LIKE IT!!!
…and there’s nothing to be nervous about with Section 8. Nothing scary there!
Good Luck,
Mike
Was that sarcastic or serious?
What kind of neighborhood is this? It surprises me that you would find a 19K property and expect to rent it for 750 to 800. Section 8 certainly helps.
the property is worth around 50k…read the post.
The higher the reward, the bigger the risk. What I do in some cases is let tenants with bad credit move into my properties in good neighborhoods. The trick here is you don’t have ex-felons moving in and you ask for 2 months up-front to cover you in case of eviction. Another option is to say that your credit is questionable but I am willing to rent to you for XXX amount of money above the offering rent price. If they pay on time which most people do, you have a renter that really doesn’t have any other options that will be long term tenants. If they can’t pay on time hit them with a late fee each month but work with them. Eviction is the last resort. You are covered each way.